Demand Curve Worksheet.pdf - ECONOMICS FOR THE VIRTUAL ENTERPRISE \u201cThe business of America is business.\u201d \u2014Calvin Coolidge Ch 3 Demand Curve

Demand Curve Worksheet.pdf - ECONOMICS FOR THE VIRTUAL...

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ECONOMICS FOR THE VIRTUAL ENTERPRISE “The business of America is business.” — Calvin Coolidge Ch 3 Demand Curve Practice Worksheet NAME: ________________________________________________________________ Exercise 1: Graphing the Demand Curve. Use the data presented in the Demand Schedule for CDs to graph the demand curve in the chart below. Exer cise 2: Mov eme nt Alon g The Dem and Cur ve. Answer the following questions based on the demand curve you have graphed: 1. When the price of a CD is $20, what is the quantity demanded by consumers? 2. When the price of a CD is $15, what is the quantity demanded by consumers? 3. When the price of a CD is $11, what is the quantity demanded by consumers? 4. As the price of a CD decreases, does the quantity of CDs demanded increase or decrease? 5. As the price of a CD increases, does the quantity of CDs demanded increase or decrease? Exercise 3: Characterizing the relationship between the change in price and the change in quantity demanded: Lines A and B are depicted in the table below. Line A depicts an inverse relationship between two variables that is characteristic of a DEMAND curve; line B depicts a direct relationship between two variables that is characteristic of a SUPPLY curve Line A Line B y y x x Negative slope: Inverse relationship between x and y variables; when y decreases, x increases. Positive slope: Direct relationship between x and y variables; when y increases, x increases. Demand Schedule For CDs Price per CD (in dollars) Quantity Demanded (in millions) 20 100 19 200 18 300 17 400 16 500 15 600 14 700 13 800 12 900 11 1000 DEMAND CURVE* 20 Price per CD (in dollars) 19 18 17 16 15 14 13 12 11 100 200 300 400 500 600 700 800 900 1000 Quantity Demanded (in millions)
ECONOMICS FOR THE VIRTUAL ENTERPRISE “The business of America is business.” — Calvin Coolidge For each pair of variables below, indicate whether the relationship between them is direct or indirect: Variable 1 (Y) Variable 2 (X) Relationship: Direct or inverse? Years of education Lifetime income Hours spent working out at gym Amount of body fat Hours spent studying for math exam Score on math exam Frequency of hand washing using anti-bacterial soap Incidence of cold and flu symptoms Price of a product Quantity demanded of product

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