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Demand" refers to the relationship between the price of a good and the quantity consumers

Demand" refers to the relationship between the price of a good and the quantity consumers

Demand" refers to the relationship between the price of a good and the quantity consumers are willing and able to buy at each price.

 

57) A "change in demand" is caused only by a change in the price of the good.

58) Assume goods X and Y are complements. A decrease in the price of X would cause the demand for Y to increase.

59) Assume goods X and Y are substitutes. An increase in the price of X would cause the demand for Y to increase.

60) Assume the demand function for good X can be written as

Qd = 80 - 3Px + 2Py + 10I

where Px = the price of X,

Py = the price of good Y, and

I = Consumer income.

This equation implies that X and Y are substitutes.

61) Assume the demand function for good X can be written as

Qd = 80 - 3Px - 2Py + 10I

where Px = the price of X,

Py = the price of good Y, and

I = Consumer income.

This equation implies that X and Y are complements.

62) Assume X is an inferior good. If the incomes of people who buy X increase, demand for X will increase as well, but by a smaller percentage than the increase in income.

63) The market demand for a good is determined by horizontally summing the demand curves of individual consumers.

64) A decrease in the incomes of people who buy canoes would cause the demand for canoes to decrease.

65) Prices of related goods are a determinant of demand but not supply.

Abhinav 07-Dec-2019

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