Demand 3.1-3 Flashcards Preview

Econ 2106 Exam 1 > Demand 3.1-3 > Flashcards

Flashcards in Demand 3.1-3 Deck (12)
Loading flashcards...
1
Q

A change in the price of a good results in?

A

A change in quantity demanded

2
Q

Does a change in price result in a shift or movement along the demand curve?

A

A change in price results in a movement along the demand curve.

3
Q

According to the law of demand, the price of a good and the quantity demanded have what type of relationship?

A

Inverse relationship

4
Q

A change in one of the other variables that are usually held constant results in consumers…?

A

Demanding more of the good at every price

5
Q

Does the change in other variables that are usually held constant result in a shift or movement on the demand curve?

A

All other variables usually held constant cause a shift in the demand curve

6
Q

A movement along the demand curve is caused by?

A

The change of quantity demanded that results from a change in price

7
Q

The demand curve never shifts when there

is a change in one of the variables measured on the axes. (True or False?)

A

True

8
Q

The phenomenon called change in demand is caused by what?

A

If one of the previously constant

variables changes we have to construct a new demand schedule and curve.

9
Q

Suppose the price of ice cream, a complement for cake, decreases. In what direction will the demand curve shift?

A

The demand curve will shift outward

10
Q

People expect the price of gasoline to fall in the near future. What will be the impact on the demand curve in the present as a result of this future expectation?

A

There will be an inward shift in the demand curve

11
Q

What causes shifts in the demand curve?

A

Changes in other variables usually held constant

12
Q

What causes movements in the demand curve>

A

Changes in price