#### B200.F08.W04.Clsnts

Excerpt: ... the marginal value of any good declines, we can then plot to amount of the good an individual would be willing to buy at alternative prices by comparing marginal value with the Price in the market place. From this analysis we derive the Demand for a good. \$ Price 8 6 4 2 24 6 8 10 12 14 16 18 20 QTY/ Time period Demand 3. DEMAND: A schedule of the alternative quantities that an individual is willing and able to buy at alternative prices. (* Definition) A. First Law of Demand: the lower the price of a good, the greater the quantity demanded, the higher the price, the lesser the quantity demanded. : Demand curve slopes downward. B. Change in Demand vrs. Change in Quantity demanded Demand traces the different amounts we would buy at different prices. A change in price is a movement along the demand schedule. A change in something other than price will shift the curve. An increase in demand means larger amounts purchased at any price, thus a rightward shift of the curve. C. Determinants of Individual Dema ...

#### SQ3_KEY

Virginia Tech, ECON 2006
Excerpt: ... likely take place? 1. a downward shift of the aggregate expenditure line and a rightward shift of the AD curve 2. a downward shift of the aggregate expenditure line and a rightward shift of the AD curve 3. an upward shift of the aggregate expenditure line and a leftward shift of the AD curve 4. an upward shift of the aggregate expenditure line and a rightward shift of the AD curve [16]If the Fed conducts an open market purchase of bonds, which of the following will happen? 1. The interest rate will decrease, the aggregate expenditure line will shift upward, and the aggregate demand curve will shift rightward. 2. The interest rate will decrease, the aggregate expenditure line will shift downward, and the aggregate demand curve will shift rightward. 3. The interest rate will increase, the aggregate expenditure line will shift downward, and the aggregate demand curve will shift leftward. 4. The interest rate will decrease, the aggregate expenditure line will shift upward, and the aggregate demand curve will shif ...

#### studyguide1spring2008eco111

West Chester, ECO 111
Excerpt: ... chedule The law of a demand: The negative relationship between price and quantity demanded. What determines the demand? Change in Demand: When the determinants of demand, other than the price of the good, change, there is a change in demand. (Shift of the demand curve) An increase in Demand means a rightward shift of the demand curve A decrease in the demand means a leftward shift in the demand curve Movement along the demand curve: When the price of the good changes, there is a movement along the demand curve (No change in demand). Supply: It refers to the entire relationship between the quantity supplied and the price of a good as illustrated by supply schedule and supply curve. Supply Schedule: A table that shows the quantity supplied at each price level Quantity Supplied: the amount of a good that seller are willing to sell. Supply curve: A graphical representation of supply schedule The law of a supply: The positive relationship between price and quantity supplied. What determines the supply? Change ...

#### LECTURE%20NOTES%2011

German University in Cairo, ECON 101
Excerpt: ... University of Modern Sciences & Arts (MSA) Dr. Heba Helmy Aggregate demand and aggregate supply/exercise ECO-101 Lecture notes 11 SHIFTS IN THE AGGREGATE DEMAND AND AGGREGATE SUPPLY CURVES SHIFTS IN THE AGGREGATE DEMAND (AD) CURVE AN INCREASE IN AGGREGATE DEMAND PRICE LEADS TO A RIGHTWARD SHIFT IN THE LEVEL AD CURVE RESULTS IN: - EQ.PRICE LEVEL RISES - EQ. QUANTITY (REAL GDP) MAY BE CAUSED BY: - INCREASE IN G (FISCAL POLICY OR WAR OR OTHERS) - RISE IN C - RISE IN I - FALL IN TAXES (FISCAL POLICY) WHEN T FALLS, C RISES, I RISES - INCREASE IN MONEY SUPPLY MONETARY POLICY) WHEN M2 RISES, i FALLS, I RISES IF EQ. OUTPUT RISES ABOVE POTENTIAL OUTPUT, INFLATION TAKES PLACE.( e.g. DURING VIETNAM WAR) A DECREASE IN AGGREGATE DEMAND LEADS TO A LEFTWARD SHIFT IN THE AD CURVE RESULTS IN: - EQ. PRICE LEVEL FALLS - EQ. QUANTITY (REAL GDP) FALLS MAY BE CAUSED BY: - FALL IN G (FISCAL POLICY) - FALL IN C (FALL IN ASSET VALUE) - FALL IN I - RISE IN TAXES ( FISCAL POLICY) WHEN T RISES, C FALLS, I FALLS - DECREASE IN M2 (M ...

#### 07suq2b

Drake, ECON 002
Excerpt: ... e of petroleum rises, then the a. demand for fertilizer will shift left. b. demand for fertilizer will shift right. c. supply of fertilizer will shift left. d. supply of fertilizer will shift right. (12) If new, less costly techniques are developed for manufacturing high-definition televisions, then the a. demand for high-definition televisions will shift left. b. demand for high-definition televisions will shift right. c. supply of high-definition televisions will shift left. d. supply of high-definition televisions will shift right. (13) Markets tend to eliminate excess supply automatically through a a. rise in price. b. fall in price. c. fall in the quantity actually sold. d. rightward shift in the supply curve. (14) Consider the supply-and-demand diagram below. If for some reason the price were below \$5, then a. the demand curve would tend to shift left. b. the supply curve would tend to shift right. c. the price would tend to fall. d. the price would tend to rise. Price \$5 Demand Quantity Supply Quiz 2 ...

#### CH11

VCCS, ECO 201/202
Excerpt: ... n increase (decrease) in the price levels shifts the aggregate expenditures schedule upward (downward). D) an increase (decrease) in the price level shifts the aggregate expenditures schedule downward (upward). 19. An increase in aggregate expenditures resulting from a decrease in the price level is equivalent to a: A) rightward shift of the aggregate demand curve. B) leftward shift of the aggregate demand curve. C) movement downward along a fixed aggregate demand curve. D) decrease in aggregate supply. Use the following to answer questions 20-21: Page 4 20. Refer to the above diagrams. A decline in aggregate expenditures from AE2 to AE1 resulting from the realbalances, interest-rate effect, and foreign purchases effects would be depicted as: A) a movement from A to B along aggregate demand curve AD1. B) a movement from B to A along aggregate demand curve AD1. C) a shift of aggregate demand from AD1 to AD2. D) a shift of aggregate demand from AD2 to AD1. 21. Refer to the above diagrams. Assumi ...

#### PS2

Michigan, ECON 401
Excerpt: ... How much do sellers receive per pound sold, net 1 of the tax? What would happen if the consumers would have to pay the tax? (Use the derivative of p to approximate the change.) Multiple Choice M1) Suppose a market were currently at equilibrium. A rightward shift of the supply curve would cause a(n) A) increase in price but a decrease in quantity. B) decrease in price but an increase in quantity. C) increase in both price and quantity. D) decrease in both price and quantity. M2) A drought in the Midwest will raise the price of wheat because of a A) leftward shift in the supply curve. B) rightward shift in the supply curve. C) leftward shift in the demand curve. D) rightward shift in the demand curve. M3) If pizza and tacos are substitutes, a decrease in the price of tacos would lead to a A) decrease in the demand curve for pizza. B) decrease in the quantity demanded of pizza. C) decrease in the price of pizza. D) All of the above. p M4) Suppose the demand function for a good is expressed as Q = 11 4 ...

#### Problem Set2

Iowa State, ECON 101
Excerpt: ... onditioners is Ed = _. Between these two prices, demand is (elastic / inelastic / unit elastic). From this we know that if the seller of air conditioners cut price from \$600 to \$200, his sales revenue will (increase / decrease / remain the same). 2. Now suppose that, due to a sharp rise in summer temperature, the demand for air conditioners increases. In particular, at each price, consumers now demand exactly 10 more air conditioners than they did before. a) Fill in the column labeled Qd' in the table in problem 1. Plot the new demand curve on the same graph above and label it D'. b) Between \$1400 and \$1000, the elasticity of demand for this good is now Ed' = _. Elasticity between these two prices has (increased / decreased / not changed) in absolute value with the rightward shift in demand. Between \$600 and \$200, the elasticity of demand for this product is now Ed' = _. Elasticity between these two prices has (increased / decreased / not changed) in absolute value afte ...

#### Ch1A

Illinois State, ECO 401
Excerpt: ... wer capital goods. 17. a) is the correct answer. Because point W lies outside the PPF, it can only be attained through economic growth, i.e., by a rightward shift in the PPF. The only way the PPF can shift is if the stock of resources (land, labor, capital, or entrepreneurial ability) increases or if the technology for producing one or both of the goods improves. A decrease in unemployed resources (labor, land, or capital) moves the economy from a point inside the PPF to a point on or closer to - but not beyond - the PPF. 18. a) is the correct answer. Starting from point A, if we decide to produce one unit of consumer goods, we would transfer from the least produc-tive resources capital goods industry that are in turn easily adaptable to the production of consumer goods. As a result, the production of capital goods would drop, but only a little, since the resources transferred were not very productive in the capital goods industry. But as we decide to produce more consumer goods, we must transfer resources th ...

#### Ch1A

Illinois State, ECO 105
Excerpt: ... goods, but at the same time to have fewer capital goods. 17. a) is the correct answer. Because point W lies outside the PPF, it can only be attained through economic growth, i.e., by a rightward shift in the PPF. The only way the PPF can shift is if the stock of resources (land, labor, capital, or entrepreneurial ability) increases or if the technology for producing one or both of the goods improves. A decrease in unemployed resources (labor, land, or capital) moves the economy from a point inside the PPF to a point on or closer to - but not beyond - the PPF. 18. a) is the correct answer. Starting from point A, if we decide to produce one unit of consumer goods, we would transfer from the least produc-tive resources capital goods industry that are in turn easily adaptable to the production of consumer goods. As a result, the production of capital goods would drop, but only a little, since the resources transferred were not very productive in the capital goods industry. But as we decide to produce more consum ...

#### assignment2key

CSU San Marcos, ECON 101
Excerpt: ... is will cause a reduction in demand which will cause the demand curve to shift to the left. (5) any market in equilibrium where external effects have no impact. For example, consider the market for used cars in Hattiesburg and the impact of an increase in the price of bread in the small fictitious Russian province of Kraplakistan. This obviously has no effect on the used car market in Hattiesburg. (6) (i) see attachments (ii) Consider the market for Viagra where a study has just determined that the drug has additional health benefits beyond its registered use some initial results suggest Viagra may help treat children with pulmonary hypertension, or PH, a rare and usually fatal condition affecting the lungs and heart. This should result in an increase in demand for the drug shown by a rightward shift of the demand curve. (7) - NOTE: there was an error in the cell of the above equation. On the original assignment it read (P: and Q: ?) but should have been (P: and Q: ?) (i) see attachments (ii) Co ...

#### Chapter4Summary

ASU, ECN 211
Excerpt: ... irs of changes of the non-price determinants of demand and supply. For example, analyze what will happen to equilibrium price and market quantity if consumers' incomes rise (X being a normal good) and the prices of the resources used to produce X decline. This will produce both an increase in demand (a rightward shift of the demand schedule) and an increase in supply (a rightward shift in the supply schedule). As you graph this out, you will note that an increase in demand combined with an increase in supply MUST cause equilibrium market quantity to rise, but the effect on equilibrium price is theoretically indeterminant (that is, it depends on the magnitudes of the shifts of the demand and supply schedules). You should work through all possible combinations of increases (or decreases) in demand and supply, and in each case reason out the implications for what can and cannot be predicted with certainty about the impact on equilibrium market prices and quantities. 3. You should note that the price system is a ...

#### MacroEcon Paper 1

University of West Georgia, ECON 2105
Excerpt: ... rom the Fed's is held at a constant, the plan that Bernanke contrived to reduce in interest rates should increase the demand for money in the average household. This proposal would cause a rightward shift of the demand curve in turn driving prices higher, or in other words, should encourage price increases assuming that all things are held constant and there are no major changes in the plan. This article is extremely pertinent to the material that we are covering in class. Before a human being becomes tremendously ill, side effects and symptoms are shown. We can study our government and economic patterns to determine if something is about to go exceptionally wrong with it. Knowing this information we can foretell what economic downturns will take place in the future. The United States can take action and determine the correct procedures that need to be taken so in turn history does not repeat itself. If the Fed's study economic history we will not put ourselves in such an economic predicament, in which we ...

#### 578hw3

ASU, MAT 578
Excerpt: ... MAT 578 HW 3 Due Wednesday, 9/17/03 Choose three of the following problems. 9. Let S be the unilateral (i.e. rightward) shift on 2 . (i) Compute S i (S )j and (S )j S i for all i, j 0. (ii) Let eij be the bounded linear operator on 2 whose matr ...

#### macro sample test1 (dont think this is correct)

Mary Washington, ECON 102
Excerpt: ... vidual, its production will not consume scarce resources. d. if people were not so greedy, scarce resources would be able to satisfy the wants of all. 8. Last year, the XYZ Corporation sold 1600 potato peelers at a price of \$6 each, and this year it sold 1950 potato peelers at a price of \$7 each. The best explanation for the change is: a. XYZ suffered a labor strike that drove up costs. b. XYZ received a bad rating from Consumer Reports. c. XYZ just had a successful advertising campaign. d. XYZ made a technological improvement. For the next several questions, consider the effect on the market for cell phones, if the Congress passed an income tax cut. 9. This would cause a. a rightward shift in the demand curve for cell phones. b. a leftward shift in the demand curve for cell phones. c. a rightward shift in the supply curve for cell phones. d. a leftward shift in the supply curve for cell phones. 10. The equilibrium price of cell phones would a. increase b. decrease c. stay the same d. increase or decrease; ...

#### 06suq2a

Drake, ECON 002
Excerpt: ... ply of cars will shift left. d. supply of cars will shift right. (11) Markets tend to automatically eliminate excess supply through a. a rise in price. b. a fall in price. c. a fall in the quantity actually sold. Principles of Microeconomics (Econ 2) Drake University, Summer 2006 Quiz 2 Version A Page 2 of 5 (13) In autumn, the price of peaches rises and the quantity sold decreases. This could be caused by a. a rightward shift in the demand. b. a rightward shift in the supply. c. a leftward shift in the demand. d. a leftward shift in the supply. (14) In recent years, the price of LCD flatscreen monitors has fallen and the quantity sold has increased. This could have been caused by a. a rightward shift in the demand. b. a rightward shift in the supply. c. a leftward shift in the demand. d. a leftward shift in the supply. (15) In autumn, the price of winter coats increases and the quantity sold increases. This could be caused by a. a rightward shift in the demand. b. a rightward shift in the supply. c. a lef ...

#### 03q2b

Drake, ECON 002
Excerpt: ... ench fries will shift right. c. supply of French fries will shift left. d. supply of French fries will shift right. (4) In an efficient, well-functioning market a. the law of one price holds. b. every potential seller will sell something. c. gains from trade (or earnings) are divided equally between buyers and sellers. d. every trade will take place at a different price. (5) Markets tend to automatically eliminate excess supply through a. a rise in price. b. a fall in price. c. a fall in the quantity actually sold. d. a rightward shift in demand. (6) In the late 1990s, the number of digital cameras sold increased sharply and the average price fell. This could have been caused by a. a leftward shift in the demand. b. a leftward shift in the supply. c. a rightward shift in the demand. d. a rightward shift in the supply. (7) In April, the price of bathing suits rose and the quantity sold increased. This could have been caused by a. a leftward shift in the demand. b. a leftward shift in the supply. c. a rightward ...

#### Ch3_Class_Demand-Supply

NSUOK, ECON 2213
Textbook: Principles of Microeconomics + DiscoverEcon code card
Excerpt: ... C. Determinants of supply. 1. A change in any of the supply determinants causes a change in supply and a shift in the supply curve. An increase in supply involves a rightward shift , and a decrease in supply involves a leftward shift. 2. Six basic determinants of supply, other than price. 5 a. Resource prices-a rise in resource prices will cause a decrease in supply or leftward shift in supply curve; a decrease in resource prices will cause an increase in supply or rightward shift in the supply curve. b. Technology-a technological improvement means more efficient production and lower costs, so an increase in supply or rightward shift in the curve results. c. Taxes and subsidies-a business tax is treated as a cost, so decreases supply; a subsidy lowers cost of production, so increases supply. d. Prices of related goods-if the price of substitute production good rises, producers might shift production toward the higher-priced good, causing a decrease in supply of the original good. e. Expectations-e ...

#### review3_1

Washington University in St. Louis, ECON 104
Excerpt: ... rease the money supply when using disinflationary monetary policy. Finally, the dollars appreciation is logical because net exports have been decreasing, which is consistent with a leftward shift in the aggregate demand curve. The appreciation could stimulate domestic growth without increasing inflation because the rest of the worlds goods become cheaper for Americans. Input prices decrease and cause a rightward shift in the aggregate supply curve, bringing about lower average price levels and higher levels of equilibrium real GDP. 345 Words ...

#### 05spm1a

Drake, ECON 002
Excerpt: ... ly curve shifts right. (7) If at the current price, quantity demanded is greater than quantity supplied, a. the price will rise. b. the price will fall. c. the price will remain constant. d. the price will oscillate. (8) In the spring, the price of heavy coats falls and the quantity purchased also falls. This could be caused by a a. rightward shift in the supply curve. b. leftward shift in the supply curve. c. rightward shift in the demand curve. d. leftward shift in the demand curve. (9) In early summer, the price of blueberries falls while the quantity purchased increases. This could be caused by a a. rightward shift in the supply curve. b. leftward shift in the supply curve. c. rightward shift in the demand curve. d. leftward shift in the demand curve. (10) Demand is more elastic for a good if a. there are close substitutes available. b. the good occupies a large share of consumers' budgets. c. consumers have more time to adjust their purchases in response to any price change. d. all of the above. Princi ...

#### chap11lecture notes

Excerpt: ... CHAPTER ELEVEN AGGREGATE DEMAND AND AGGREGATE SUPPLY INSTRUCTIONAL OBJECTIVES After completing this chapter, students should be able to: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Define aggregate demand and aggregate supply. Give three reasons why the aggregate demand curve slopes downward. Illustrate, label, and explain the three ranges of the aggregate supply curve. State the determinants of the aggregate demand curve's location. Explain the shape of the aggregate supply curve. Indicate the determinants of the supply curve's location. Explain how a market economy moves to equilibrium price and output level. Predict effects of an increase in aggregate demand when economy is in (a) horizontal range, (b) intermediate range, and (c) vertical range. Explain how the multiplier is weakened in the intermediate or vertical range of aggregate supply. Explain the ratchet effect of a decrease in aggregate demand. State three basic causes of changes in aggregate supply differentiating between leftward and rightward shift ...

#### 04q2

Drake, ECON 002
Excerpt: ... ciples of Microeconomics (Econ 002) Drake University, Summer 2004 (10) Consider the supply-and-demand diagram below. If for some reason the price were below \$5, then a. the demand curve would tend to shift left. b. the supply curve would tend to shift left. c. the price would tend to fall. d. the price would tend to rise. Price \$5 Demand Quantity (11) Markets tend to automatically eliminate excess supply through a. a rise in price. b. a fall in price. c. a fall in the quantity actually sold. d. a leftward shift in demand. Supply Quiz #2 Page 2 of 4 (12) In recent years, the number of flat-screen computer monitors sold has increased sharply and the average price has fallen. This could be caused by a. a rightward shift in the demand. b. a rightward shift in the supply. c. a leftward shift in the demand. d. a leftward shift in the supply. (13) In early summer, the price of peaches falls and the quantity sold increases. This could be caused by a. a rightward shift in the demand. b. a rightward shift in the supp ...

#### lecture3

Cal Poly Pomona, EC 201
Excerpt: ... s Quantity Demanded (QD) to change? PRICE (of the good itself). For example, if the price of wheat falls, then the quantity of wheat demanded will rise and vice versa. If the price of jellybeans rises, then the quantity of jellybeans will fall and vice versa. Changes in price will be shown as movements along one D-Curve. (See Graph 2 above, or Graph 1 on the last page). Ceteris Paribus Assumptions for Demand For one Demand Curve (D-Curve) all things other than Price (of the good itself) remain the same, or are held constant. For example, a particular demand curve for wheat is constructed with consumer income, prices of other related goods, i.e. corn, butter, etc. held constant. What causes Demand (D) to change? Changes in the ceteris paribus assumptions, or any of the variables that were held constant to construct one D-Curve. 2 EC 1 Dr. Bresnock Graph 3 Changes in Demand (Shifts in the D-Curve) Lecture 3 D1 = in Demand ( rightward shift of the D-Curve) = consumers are willing ...

#### Lecturenotes3

UCLA, ECON 1
Excerpt: ... the going price of Coke, there will be a greater quantity demanded for Coke. Since there is a greater Qd at each given price of Coke, the entire demand curve shifts we say that Demand for Coke rises as the price of Pepsi rises. The demand for a substitute will always move in the same direction as the price of its substitute. 3 Econ 1 Dr. Narag P Pepsi market (the price increases from P1 to P2 and Qd decreases). Lecture 3 P2 P1 D 0 Q1 Q2 Q P Coke market (Qd increases for any given price). D1 0 D2 Q The distinction between quantity demanded and demand is an important one demand only changes when a variable besides the price of the g/s in question changes. When the good or service's own price changes only quantity demanded changes, not demand! 4 Econ 1 Dr. Narag Changes in Demand (Shifts in the D-Curve) Lecture 3 D2 D D1 D1 = in Demand ( rightward shift of the D-Curve) = consumers are willing and able to purchase MORE at each alternative price. D2 = in De ...

#### ExtraHomework1ans

Illinois State, ECON 105
Excerpt: ... he left. We end up with a lower price of sweatshirts and a larger quantity of sweatshirts bought and sold. d. 7. The question essentially says that the equilibrium quantity has increased while the equilibrium price has fallen. If only one curve has shifted, then we must have a rightward shift (an increase) in the supply curve. This reasoning is consistent with the information in the problem that the change is due to new knowledge. The new knowledge would first affect producers of cattle (suppliers) by lowering their costs of production. ...