ECON 2301 (Ch.4 Quiz)

ECON 2301 (Ch.4 Quiz) - Quiz Chapter 4 1. The law of demand...

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Quiz Chapter 4 1. The law of demand asserts that the quantity of a good that people will buy is inversely related to the product’s price. 2. If the demand for mils is downward sloping, then an increase in the price of mile will result in a decrease in the quantity of milk demanded. 3. Shown are the demand schedules for gourmet ice cream of two individuals and the rest of the market. At a price of $8, the quantity demanded in the market would be: $12.00 Price per Ice Cream Sven Larry Rest of Market Market $8 $5 $0 $7 add all together ($12) 4. A demand curve shows the relationship between price and quantity demanded, “other things remaining constant (ceteris Paribus).” The other things that remain constant include price of the complementary and preferences of consumers. 5. All the following would shift a product’s demand curve: decrease in consumer income, increase in the price of a substitute, increase in the price of a complement, and change in consumer preferences.
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ECON 2301 (Ch.4 Quiz) - Quiz Chapter 4 1. The law of demand...

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