review2 - Professor G.J Swanson REVIEW QUESTIONS SET#2 1 2...

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Professor G.J. Swanson REVIEW QUESTIONS – SET #2 1. What is the law of demand? 2. What is the difference between a change in demand and a change in quantity demanded ? 3. Explain how the law of demand shows that the everyday concept of “need” is not a very useful concept for economic analysis. 4. What factors cause a change in demand? (shift in curve) 5. Relate what happens to the demand for cars in each of the following cases: a) People’s income increases. b) Gas becomes more expensive. c) You believe that the car manufacturers will soon offer a rebate to buyers of new cars. d) The price of cars increases. e) Bus transportation becomes less expensive. 6. A higher price for beef will lead to a reduction in the quantity demanded. What factors would cause the demand for beef to increase so that more might be demanded at higher prices? Why is this completely consistent with the law of demand? 7.
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review2 - Professor G.J Swanson REVIEW QUESTIONS SET#2 1 2...

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