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The Demand Curve quiz #5 Flashcards

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The Demand Curve quiz #5
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  • What is meant by 'demand' in economics?
    Demand refers to the entire relationship between prices and the quantities of a good that consumers are willing and able to purchase.
  • What two factors are necessary for demand to exist?
    The two factors necessary for demand are willingness to buy and ability to pay for the good.
  • What does the vertical axis of a demand curve show?
    The vertical axis of a demand curve shows the price of the good.
  • For what do consumers create demand?
    Consumers create demand for goods and services in the market.
  • How is consumer demand defined?
    Consumer demand is the quantity of a good or service that consumers are willing and able to purchase at various prices.
  • What determines the demand for a good or service?
    The demand for a good or service is determined by the price of the good and the willingness and ability of consumers to purchase it.
  • What is the typical slope of a demand curve for a normal good?
    The demand curve for a typical good has a downward slope, indicating that as price decreases, quantity demanded increases.
  • What are the two variables needed to calculate demand?
    The two variables needed to calculate demand are price and quantity demanded.
  • What is the law of demand?
    The law of demand states that, all else equal, as the price of a good increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases.
  • How is consumer demand described in microeconomics?
    Consumer demand is the amount of a good or service that consumers are willing and able to buy at different prices.
  • What does the law of demand state?
    The law of demand states that when the price of a good rises, the quantity demanded falls, and when the price falls, the quantity demanded rises, ceteris paribus.
  • What does a market demand curve show?
    A market demand curve shows the total quantity demanded by all consumers in the market at each price.
  • How does the law of demand apply to market demand?
    The law of demand applies to market demand by showing that as the price increases, the total quantity demanded by all consumers decreases, and vice versa.
  • What is the law of demand in economics?
    The law of demand in economics states that, holding all else constant, an increase in price leads to a decrease in quantity demanded, and a decrease in price leads to an increase in quantity demanded.
  • Which statement best explains the law of demand?
    The law of demand is best explained by the inverse relationship between price and quantity demanded: as price rises, quantity demanded falls.
  • Which statement is consistent with the law of demand?
    A statement is consistent with the law of demand if it describes that higher prices lead to lower quantity demanded, and lower prices lead to higher quantity demanded.
  • How is the law of demand described?
    The law of demand is described as the principle that, all else equal, an increase in the price of a good leads to a decrease in the quantity demanded.
  • Who creates the demand for goods such as coffee shops?
    Consumers or buyers create the demand for goods such as coffee shops.
  • How does the concept of ceteris paribus relate to demand?
    Ceteris paribus means 'all else equal' and is used in the law of demand to indicate that only the price is changing while other factors remain constant.
  • What does ceteris paribus mean in the context of demand?
    In the context of demand, ceteris paribus means that the relationship between price and quantity demanded is analyzed while holding all other factors constant.
  • What is consumer demand?
    Consumer demand is the quantity of a good or service that consumers are willing and able to purchase at various prices.
  • What two qualities make up demand?
    The two qualities that make up demand are willingness to buy and ability to pay.
  • What does the market demand curve show?
    The market demand curve shows the total quantity demanded by all consumers at each price.
  • What does a demand curve illustrate?
    A demand curve illustrates the relationship between the price of a good and the quantity demanded by consumers.
  • How is demand defined in economics?
    Demand is defined as the relationship between the price of a good and the quantity that consumers are willing and able to buy at each price.
  • What two elements are shown on a demand curve?
    The two elements shown on a demand curve are price (on the vertical axis) and quantity demanded (on the horizontal axis).
  • What does a market demand curve show in microeconomics?
    A market demand curve shows the total quantity demanded by all consumers in the market at each price.
  • What do points on the demand curve represent?
    Points on the demand curve represent the quantity demanded at specific prices.
  • What does a market demand curve predict?
    A market demand curve predicts the total quantity that will be demanded by all consumers at each possible price.