Question

Consider the following demand schedule: At price of $70, there are 800 units purchased. At a price of $75, there are 750 units purchased. At a price of $80, there are 680 units purchased. At a price of $85, there are 610 units purchased. At a price of $90, there are 560 units purchased.

	12.1.	What is the quantity demanded if price is 80?
		units of X Please enter a whole number, with no decimal point. Consider the following demand schedule: At price of $70, there are 800 units purchased. At a price of $75, there are 750 units purchased. At a price of $80, there are 680 units purchased. At a price of $85, there are 610 units purchased. At a price of $90, there are 560 units purchased. 12.2.   From this demand schedule we know that the demand curve (where Q is on the horizontal axis) will be: A.  vertical B.  upward sloping C.  downward sloping D.  horizontal Consider the following demand schedule: At price of $70, there are 800 units purchased. At a price of $75, there are 750 units purchased. At a price of $80, there are 680 units purchased. At a price of $85, there are 610 units purchased. At a price of $90, there are 560 units purchased. 12.3.   If price increases from $75 to $90, quantity demanded falls by ________. Consider the following demand schedule: At price of $70, there are 800 units purchased. At a price of $75, there are 750 units purchased. At a price of $80, there are 680 units purchased. At a price of $85, there are 610 units purchased. At a price of $90, there are 560 units purchased. 12.4.   This demand curve will shift if: A.  price increases B.  price decreases C.  there is a change in ceterus paribus assumptions D.  price either increases or decreases 13.  When the price of good x changes, the demand for good X changes. True False

Answer 1

Q12.1 Answer is 680 units.

The explanation is as follows:

It has bene gven in the question, at price $ 80, the demand for goods is 680 units

Q12.2 Answer is C. Downward sloping.

The explanation is as follows: Demand curve is downward sloping as the price increases the demand for goods decreases.

Q12.3 Answer is quantity demanded fally by 190 units.

The explanation is as follows:

At price 75, the demand for product:       750 units

At price 90, demand for product:             560 units

Fall in demand:                                        190 units

Q12.4 Answer is C. There is a chnage in Ceterus paribus assumption.

The explanation is as follows:

The demand curve will shift will only on the change in other factors affecting emand (other than own price of goods).

Therefore, the demand curve will shift, when the assumption of other factor remain same (i.e. ceterus paribus), will change

Q13. Answer is True.

The explanation is as follows:

In case of normal goods, when the price of goods rises, the demand for goods falls and vice versa. Therefore, the change in price will result in change in demand of product.