Exam Solution Manual for Macroeconomics- Demand Already Passed
6 views 0 purchase
Course
Macroeconomics
Institution
Macroeconomics
Exam Solution Manual for Macroeconomics- Demand Already Passed
The Demand Curve is downward sloping because - Answers 1. As prices rise, the purchasing power of each dollar earned falls, and consumers are willing and able to buy less of a good. 2. The benefit of consuming more of a good falls wit...
Exam Solution Manual for Macroeconomics- Demand Already Passed
The Demand Curve is downward sloping because - Answers 1. As prices rise, the purchasing power of
each dollar earned falls, and consumers are willing and able to buy less of a good. 2. The benefit of
consuming more of a good falls with each additional unit, so the price consumers are willing and able to
pay also fails with increased consumption. 3. As consumers purchase substitutes, the quantity
demanded of the good falls.
Service - Answers An intangible product or action that consumers, firms, or governments wish to
purchase
Demand Curve - Answers A graphical representation of the relationship between the price of a good,
service or resource and the quantity that individuals and firms are willing and able to buy, all else held
constant, describes the demand curve
Resource - Answers Any item, whether a gift of nature, the result of production, or the result of human
effort, that is used to produce goods and services
3 Main reasons why demand curves are downward sloping - Answers 1) Income Effect
2) Substitution Effect
3) Diminishing Marginal Utility
As the price of a good, service or resource rises: - Answers The quantity demanded will fall
Income Effect - Answers The effect that a change in the price of a good, service, or resource has on
purchasing power of income
The horizontal summation of individual demand curves - Answers Market Demand
Goods - Answers Tangible product that consumers, firms, or governments wish to purchase
Demand Schedule - Answers A tabular representation of the relationship between the price of a good,
service or resource and the quality that individuals and firms are willing and able to buy, all else held
constant, describes the:
Substitution Effect - Answers The effect that a change in the price of one good, service, or resource has
on the demand for another
Market Demand - Answers Represents the horizontal summation of individual demand curves
The Opportunity cost of having more capital and being more productive in the future is reduced
__________ today. - Answers Consumption
By allocating time and resources to schooling instead of another activity, you will have
_________________ capital in the future, increasing your productivity. - Answers Human
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
