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ECON 2150 CHP 2 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) ||ALREADY GRADED A+||NEWEST VERSION $13.49
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ECON 2150 CHP 2 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) ||ALREADY GRADED A+||NEWEST VERSION

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  • ECON 2105
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  • ECON 2105

Quiz: Why do prices vary so much? Ans: Changes in Supply and Demand conditions affects pattern of prices Quiz: competitive markets Ans: are those with sellers and buyers that are small and numerous enough that they take the market price as given when they decide how much to buy and sell. sel...

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  • January 20, 2025
  • 29
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • ECON 2105
  • ECON 2105
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ECON 2150 CHP 2 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
||ALREADY GRADED A+||NEWEST VERSION
Quiz: Why do prices vary so much?

Ans: Changes in Supply and Demand conditions affects pattern of prices




Quiz: competitive markets

Ans: are those with sellers and buyers that are small and numerous enough

that they take the market price as given when they decide how much to buy and

sell. sell homogenous material. No barriers for entering or exiting the market as

in No strict rules from government. buyers and sellers have perfect knowledge

of material and price.




Quiz: Market demand function definition

Ans: tells us that the quantity of a good all consumers in the market are

willing to buy is a function of various factors.




Quiz: Market Demand Function formula

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Ans: Q^d = (Q,p,po, I, ...)




Quiz: 2 types of market demand

Ans: Derived Demand, Direct Demand




Quiz: Derived Demand

Ans: The part of demand for a good that is derived from the production and

sale of other goods.




Quiz: Direct Demand

Ans: The part of demand for a good that comes from the desire of buyers to

directly consume the good itself.




Quiz: Market demand curve definition




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Ans: plots the aggregate quantity of a good that consumers are willing to buy

at different prices, holding constant other demand drivers such as prices of

other goods, consumer income, quality.




Quiz: Market demand curve formula

Ans: Q^d = Q(p)




Quiz: law of demand

Ans: states that the quantity of a good demanded decreases when the price of

this good increases.




Quiz: Demand curve rule

Ans: A move along the demand curve for a good can only be triggered by a

change in the price of that good. Any change in another factor that affects the

consumers' willingness to pay for the good results in a shift in the demand curve

for the good.




Quiz: The Demand Curve shifts when

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