Which of the following events in the market for cell phones illustrates the law of demand
Question 1
Question 2
Well done! A change in the quantity demanded is a change in the quantity of a good that people plan to buy that results from a change in the price of the good with all other influences on buying plans remaining the same.
A change in demand is a change in the quantity that people plan to buy when any influence on buying plans other than the price of the good changes.
Tastes or preferences, as economists call them influence demand.
When Caribbean cruises become less popular the demand for them decreases, but NOT their quantity demanded, which is only affected when the price of Caribbean cruises changes.
Question 3
Well done! A change in the quantity demanded is a change in the quantity of a good that people plan to buy that results from a change in the price of the good with all other influences on buying plans remaining the same.
A change in demand is a change in the quantity that people plan to buy when any influence on buying plans other than the price of the good changes.
Tastes or preferences, as economists call them, influence demand.
When using desktop computers becomes less popular the demand for desktop computers decreases, and given that laptops are very close substitutes to desktop computers, people will demand more laptops, all else equal, which will increase the demand for laptops, but NOT the quantity demanded for laptops, which would have occurred if the price of laptops went down, information which is not provided in this question, and thus we cannot assume.
Question 4
Question 5
Well done! As described in the model, when supply decreases, the supply curve shifts to the left. This occurs because for any arbitrary price level a shift to the left gives a smaller corresponding quantity supplied.
Which of the following events in the market for cell phones illustrates the law of demand? Question 6
Question 7
Which of the following events in the market for cell phones illustrates the law of demand? Question 8
Well done! You need to analyze how each of the two events described in each option affect the demand curve and supply curve respectively. Remember that an increase means a shift to the right for both the supply and demand curves. Remember that a decrease means a shift to the left for both the supply and demand curves.
Question 9
Which of the following events in the market for cell phones illustrates the law of demand Question 10
Well done! A price floor is a legal minimum. A price ceiling is a legal maximum.
Well done! Recall that the law of demand for good X refers to how the quantity demanded of good X responds to the price of good X (not prices of other goods), when all other factors (demand shifters) are kept constant.