331 changes in quantity demanded versus changes in

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3.3.1. - Changes in Quantity Demanded versus Changes in Demand
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17 of 69 3.1 - Firms and Households: The Basic Decision-Making Units 3.2 - Input Markets and Output Markets: The Circular Flow 3.3 - Demand in Product/Output Markets 3.3.1 - Changes in Quantity Demanded versus Changes in Demand 3.3.2 - Price and Quantity Demanded: The Law of Demand 3.3.3 - Other Determinants of Household Demand 3.3.4 - Shift of Demand versus Movement Along the Demand Curve 3.3.5 - From Household Demand to Market Demand 3.4 - Supply in Product/Output Markets 3.4.1 - Price and Quantity Supplied: The Law of Supply 3.4.2 - Other Determinants of Supply 3.4.3 - Shift of Supply versus Movement Along the Supply Curve 3.4.4 - From Individual Supply to Market Supply 3.5 - Market Equilibrium 3.5.1 - Excess Demand 3.5.1 - Excess Supply 3.5.1 - Changes in Equilibrium
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18 of 69 demand schedule A table showing how much of a given product a household would be willing to buy at different prices. 3.3.2 - Price and Quantity Demanded: The Law of Demand demand curve A graph illustrating how much of a given product a household would be willing to buy at different prices. 3.3 - Demand in Product/Output Markets
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19 of 69 TABLE 3.1 Anna’s Demand Schedule for Telephone Calls Price (Per Call) Quantity Demanded (Calls Per Month) $ 0 30 .50 25 3.50 7 7.00 3 10.00 1 15.00 0 trianglecentrt FIGURE 3.2 Anna’s Demand Curve 3.3.2 - Price and Quantity Demanded: The Law of Demand 3.3 - Demand in Product/Output Markets
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20 of 69 law of demand The negative relationship between price and quantity demanded. Demand Curves Slope Downward 3.3.2 - Price and Quantity Demanded: The Law of Demand 3.3 - Demand in Product/Output Markets
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21 of 69 Fill in the blanks. It is reasonable to expect that quantity demanded will __________ when price rises, ceteris paribus , and that demand curves have a __________ slope. a. rise; positive b. rise; negative c. fall; positive d. fall; negative
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22 of 69 Other Properties of Demand Curves Two additional things are notable about Anna’s demand curve: 1)As long as households have limited incomes and wealth, all demand curves will intersect the price axis. 2) Demand curves intersect the quantity axis 3.3.2 - Price and Quantity Demanded: The Law of Demand 3.3 - Demand in Product/Output Markets
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23 of 69 Other Properties of Demand Curves 3.3.2 - Price and Quantity Demanded: The Law of Demand To summarize what we know about the shape of demand curves: 1. They have a negative slope. 2. They intersect the quantity ( X -) axis, a result of time limitations and diminishing marginal utility. 3. They intersect the price ( Y -) axis, a result of limited incomes and wealth. 3.3 - Demand in Product/Output Markets
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24 of 69 That demand curves intersect both the price and the quantity axes is a matter of common sense. Which of the following explains that they intersect the price axis? a. Time limitations and diminishing marginal utility.
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