Unit 2 Lesson 1 Understanding Demand

24 February 2023

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6 test answers

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question

Why does an economist create a market demand curve?

answer

To predict how people will change their habits when prices change.

question

What is the effect of the interaction of buyers and sellers on a market?

answer

Agreement on the price and the quantity traded

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What does it mean when an economist says that a consumer has demand for a good or service?

answer

The consumers is willing and able to buy the good or service at the specific price.

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How does the substitution effect work when the price of an item drops?

answer

Consumers buy the item as the substitute for other things

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If prices rise and income stays the same, what is the effect on demand

answer

Fewer goods are bought

question

Thanks!

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