Chapter 3 Assignment

Chapter 3 Assignment - Chapter #3 Assignment 1. What are...

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Chapter #3 Assignment 1. What are the determinants of demand? What happens to the demand  curve when each of these determinants changes? Distinguish between a change  in demand and a change in the quantity demanded, noting the cause(s) of each. The  basic  determinants   of  demand  are consumers’   tastes  (preferences),  the  number of buyers in the market, consumers’ incomes, the prices of related goods,  and consumer expectations.   A change in one or more of the determinants of  demand will change the demand data by shifting the demand curve.  A decrease  in demand shifts the curve to the left; an increase shifts it to the right.  A change in  the quantity demanded shifts to the right for an increase and left when there’s a  decrease. 2. Explain the law of supply.   Why does the supply curve slope upward?  How is the market supply curve derived from the supply curves of individual  producers? As the price rises, the quantity supplied rises; as price falls, the quantity supplied 
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Chapter 3 Assignment - Chapter #3 Assignment 1. What are...

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