Q5. What do you mean by the demand of a commodity? a) Desire for the commodity b) Need for the commodity c) Quantity demanded of that commodity d) Quantity that consumers are able and willing to buy at various prices during any particular period of time
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- As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.The law of demand states that as product’s price increases, its quantity demanded decreases, assuming other factors remain constant or ‘ceteris paribus’. Why is it necessary to assume that other factors remain constant?A demand schedule A) shows how the demand changes when the supply changes. B) is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. C) shows the quantity demanded at one price. O D) is a graph showing a relationship between the quantity demanded and the price of a good.
- Which of the following statements is false? To an economist, demand is different from quantity demanded. O A demand schedule is the numerical tabulation of the law of demand. A demand curve is the graphical representation of the direct relationship between price and quantity demanded.6. Why do we need a units-free measure of the responsiveness of the quantity demanded of a good or service to a change in its price?Figure 3-7 D2 D, Quantity of lce Cream In Figure 3-7, suppose D1 and S1 indicate the initial conditions in the market for ice cream. Which of the following changes would tend to cause the shift from D1 to D2 in the market for ice cream? a decrease in the price of sugar, an ingredient used to produce ice cream an increase in the price of frozen yogurt, a substitute for ice cream abnormally cold weather that decreased consumer desire for ice cream an increase in the price of milk, an ingredient used to produce ice cream Price
- 3 S i a 9 ormation X During an exam week, students flock to the stores to buy more espresso. As a result, the Q (Supply/Demand) in espresso would A/ (left/right) and the increase to the equilibrium price (P*) of espresso would A (increase/decrease). The equilibrium quantity (Q") of espresso would (increase/decrease)When does a consumer buy more quantity of a commodity at a given price? give three points.3. If all other factors remain the same, what happens to the demand curve for coffee if there is: (a) an increase in the price of tea, (b) a decrease in family income, (c) an increase in the price of coffee? In answering these questions draw and carefully label a set of axes. On the horizontal axis of your graph, show the quantity of coffee. On the vertical axis show the price per cup of coffee. Since you do not have specific data on prices and quantities demanded, just indicate prices with a P and Quantity with a Q. Focus on the general shape and position of the curves before and after events occur. Draw new curves to show what happens in each of the circumstances given, if necessary. 3. If all other factors are unchanged, what happens to the supply curve for coffee if there is: (a) an increase in wages paid to coffee store clerks, (b) an increase in the price of coffee, or (c) an increase in the number of coffee stores? In answering these questions draw graphs, as necessary, using…
- d) Assume instead there is an increase in the price of tin, a major input in producing gadgets. Whatwill be the effect of an increase in the price of tin on the market for gadgets?What effect will each of the following have on the supply of auto tires? Microeconomics chapter 3 Supply is a schedule or curve showing the amounts of a productthat producers are willing to offer in the market at each possibleprice during a specific period. The law of supply states that otherthings equal, producers will offer more of a product at a high pricethan at a low price. Thus, the relationship between price and quantity supplied is positive or direct, and supply is graphed as anupsloping curve.The market supply curve is the horizontal summation of thesupply curves of the individual producers of the product.Changes in one or more of the determinants of supply (resource prices, production techniques, taxes or subsidies, the pricesof other goods, producer expectations, or the number of sellers inthe market) shift the supply curve of a product. A shift to the rightis an increase in supply; a shift to the left is a decrease in supply. Incontrast, a change in the price of the…What effect will each of the following have on the supply of auto tires? Microeconomics chapter 3 Supply is a schedule or curve showing the amounts of a productthat producers are willing to offer in the market at each possibleprice during a specific period. The law of supply states that otherthings equal, producers will offer more of a product at a high pricethan at a low price. Thus, the relationship between price and quantity supplied is positive or direct, and supply is graphed as anupsloping curve.The market supply curve is the horizontal summation of thesupply curves of the individual producers of the product.Changes in one or more of the determinants of supply (resource prices, production techniques, taxes or subsidies, the pricesof other goods, producer expectations, or the number of sellers inthe market) shift the supply curve of a product. A shift to the rightis an increase in supply; a shift to the left is a decrease in supply. Incontrast, a change in the price of the…
