Suppose there are 100 consumers with identical individual demand curves. When the price of a movie ticket is 8, the quantity demanded for each person is 5 . When the price is 4, the quantity demanded for each person is 9 . Assuming the law of demand holds, which of the following choices is the most likely quantity demanded in the market when the price is 6?
a. 700
b. 1,200
c. 400
d. 1,000
e. 100
QUESTION 2We can find the market demand for pears by:
a. adding up all the prices people are willing to pay for pears.
b. multiplying the number of people times the price of pears.
c. adding up the number of pears that producers are willing to sell.
d. multiplying the number of pears by the price of pears.
e. adding up all the individual demand curves for pears.
QUESTION 3A curve that depicts the relationship between price and quantity demanded is the:
a. supply curve. b. supply schedule.
c. demand curve. d. equilibrium price.
QUESTION 4At a price of 5, Sam buys 10 units of a product; when the price increases to 6, Sam buys 8 units. Martha says Sam's demand has decreased. Is Martha correct?
a. Yes, Martha is correct. Sam's demand has decreased.
b. No, Martha is incorrect. Sam's demand has increased.
c. No, Martha is incorrect. Sam's quantity demanded has decreased, and his demand has not changed.
d. No, Martha is incorrect. Sam's quantity demanded has increased, and his demand has increased.
e. No, Martha is incorrect. Sam's demand has increased, and his quantity demanded has decreased.
QUESTION 5Which of the following can bring about a change in the quantity demanded?
a. Change in supply.
b. Change in quality.
c. Change in income.
d. Change in product price.
e. Change in taste.
QUESTION 6A market demand curve:
a. is the sum of the demand curves of all the individuals in a particular market.
b. is determined by the demand of those who purchase in quantity.
c. is always horizontal.
d. cannot be estimated.
e. never includes demand by the government.
QUESTION 7The horizontal summation of individual demand curves gives:
a. a supply curve.
b. a Phillips curve.
c. a market demand curve.
d. the quantity supplied.
e. a production function.
QUESTION 8A demand curve:
a. has a positive slope.
b. illustrates the negative relationship between price and quantity demanded.
c. illustrates the positive relationship between price and quantity demanded.
d. is based on the assumption of a stable supply curve.
e. shifts about in a random fashion.
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