What is a market demand curve?

the total sum of individual demand curves for a product

What could cause demand for new cars to shift to the left in a country?

an increase in the cost of borrowing

What's consistent with a downward sloping demand curve for an individual?

As price falls, people switch away from rival products

In 2009, demand for second-hand used cars in Venezuela increased. What could explain this?

increase in restrictions on importing new cars to Venezuela

What will cause the demand curve for domestically made cars to shift to the left?

a reduction in import taxes on foreign cars

What's the impact on price and supply when demand falls when costs of production fall as well.

Price falls but the change in quantity supplied is uncertain

How would the movie industry's anti-piracy measures affect demand and supply of legal DVDs?

Demand and supply both shift right

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Basics of the Market Mechanism

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#AS Economics #Microeconomics #Market Mechanism Introduction

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Questions 10

Answers

1
What is a market demand curve?
the total sum of individual demand curves for a product
the output of all the firms in an industry
the stocks of a particular good available for sale
the demand for all of a country’s products
2
What could cause demand for new cars to shift to the left in a country?
an increase in the price of train travel
an increase in real disposable income
an increase in the price of new cars
an increase in the cost of borrowing
3
What's consistent with a downward sloping demand curve for an individual?
As price rises, opportunity cost of buying the product falls
As price falls, ability and willingness to buy will decline
As price falls, people switch away from rival products
As price rises, people become less sensitive to price change
4
In 2009, demand for second-hand used cars in Venezuela increased. What could explain this?
a decrease in the price of public transport
increase in restrictions on importing new cars to Venezuela
an increase in the domestic production of cars
a decrease in the number of people passing the driving test
5
What will cause the demand curve for domestically made cars to shift to the left?
a reduction in taxes on the purchase of cars
an increase in the costs of production of cars made here
a reduction in import taxes on foreign cars
a reduction in the tax on petrol
6
What is the equilibrium market price for raw materials
$9
$10
$8
$7
7
Which diagram represents a change in the quantity demanded?
Diagram 1 only
Diagrams 1 and 2
Diagram 3 only
Diagrams 1 and 3
8
Using the table, which is a point on the short-run supply schedule of the industry?
At $4, 900 units are supplied
At $3, 650 units are supplied
At $1, 600 units are supplied
At $3, 700 units are supplied
9
What's the impact on price and supply when demand falls when costs of production fall as well.
Price change is uncertain, but quantity supplied falls
Price falls but the change in quantity supplied is uncertain
The change in price and quantity supplied is uncertain
Price and quantity supplied both fall
10
How would the movie industry's anti-piracy measures affect demand and supply of legal DVDs?
Demand and supply both shift right
Demand shifts left, supply shifts right
Demand shifts right, supply shifts left
Demand shifts left, supply shifts left

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