Question

In: Economics

In a demand analysis, "quantity demanded" refers to the amount of a good people desire the...

In a demand analysis, "quantity demanded" refers to

  1. the amount of a good people desire
  1. the amount of a good people are able and willing to buy during a specific time period and at a given price
  1. the amount of a good people are able and willing to buy at all possible prices
  1. the minimum amount of a good that people are willing to buy during a specific time period and at a given price


The price of automobiles falls. How does the fall in the price of automobiles affect the demand for automobiles?

  1. The demand for automobiles increases.
  1. The demand for automobiles decreases.
  1. There is no change to the demand for automobiles, but the quantity of automobiles demanded increases.
  1. There is no change to the quantity demanded of automobiles, but the demand for automobiles increases.

In economic terms, to say that there has been an increase in demand for a product means that:

  1. the demand curve has shifted to the left.
  1. the product's price has fallen and as a result consumers are buying a larger quantity of the product.
  1. the product has become scarce for some reason.
  1. consumers are now willing to purchase more of the product at each possible price.

Assume the demand for sugar decreases while the supply increases. Which of the following
      outcomes is certain to occur in the sugar market?

  1. The equilibrium price of sugar will rise.
  1. The equilibrium quantity of sugar will rise.
  1. The equilibrium price of sugar will fall.
  1. The equilibrium quantity of sugar will fall.

Which is not characteristic of a product with relatively inelastic demand?

  1. The good is regarded by consumers as a necessity
  1. There are a large number of good substitutes for the good
  1. Buyers spend a small percentage of their total income on the product
  1. Consumers have had only a short time period to adjust to changes in price

Solutions

Expert Solution

1. B. the amount of a good people are able and willing to buy during a specific time period and at a given price

Explanation: Quantity demanded is the amount of a particular good which a consumer is both able and willing to buy at a particular price and a time period.

2. C. There is no change to the demand for automobiles, but the quantity of automobiles demanded increases.

Explanation: Demand changes when there is a change in factors other than price. quantity demanded changes with price.

3. D. consumers are now willing to purchase more of the product at each possible price.

Explanation: When demand increases, the demand curve shifts towards the right; therefore, consumers are willing to buy more quantity at each price point.

4. Option C. The equilibrium price of sugar will fall.

Explanation: Here, the demand curve shifts left and the supply curve shifts right. So, the equilibrium price falls.

5. Option B. There are a large number of good substitutes for the good

Explanation: Goods with a large number of substitutes would have relatively elastic demand.

Rahul Sunny answered 2 years ago
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