Chapter 2 Flashcards
Economists use the term demand to refer to:
the relationship between the various possible prices of a product and the quantities that consumers
are willing to purchase at each price
Quantity demanded refers to the:
amount of a product that consumers are willing to purchase at a certain price
The law of demand states that:
price and quantity demanded are inversely related
One reason that the quantity demanded of a product increases when its price falls is that
the product has greater value in terms of satisfaction per dollar spent
The demand curve for a product may have a positive (upward) slope when:
the “Veblen effect” applies
A demand schedule:
is a table that expresses possible combinations of prices and quantities demanded of a product
The demand curve shows the relationship between:
price and quantity demanded, of which price is the independent variable on the vertical axis
Graphically, the market demand curve is:
the horizontal sum of individual demand curves
When an economist says that the demand for a product has increased, he or she means that:
consumers are now willing to purchase more of this product at every price
The demand curve for chocolate shifts to the right if:
) medical studies conclusively find that chocolate helps fight migraines
An economist for a bicycle company predicts that, ceteris paribus, a rise in consumer incomes
increases the demand for bicycles. This prediction is based upon the assumption that:
there are few goods that are substitutes for bicycles
Which of the following is most likely to be an inferior product?
used clothing
- A rightward shift in the demand curve for product C might be caused by a(n):
increase in income if C is a normal product
Digital music players and digital music are:
complementary products
. If the price of K declines, the demand curve for complementary product J:
shifts to the right
