The following table shows the demand for notebooks of four consumers
Price
($/unit) Consumer 1
Demand (units) Consumer 2 Demand (units) Consumer 3 Demand (units) Consumer 4 Demand (units)
$8 8 6 9 10
$6 16 10 15 18
$4 20 13 21 24
$1 22 17 24 27
Define the term "market demand." If these four consumers constitute the entire market, calculate the market demand for notebooks at $1, $4, $6, and $8.
The term "market demand" refers to the sum of the individual demands of all potential buyers in a market.
Market demand at $1 = 22 + 17 + 24 + 27 = 90 units
Market demand at $4 = 20 + 13 + 21 + 24 = 78 units
Market demand at $6 = 16 + 10 + 15 + 18 = 59 units
Market demand at $8 = 8 + 6 + 9 + 10 = 33 units
You might also like to view...
When the economy is in a recession, ________ taxes decrease while ________ spending increases and, as a result of this automatic fiscal policy, aggregate demand ________
A) induced; discretionary; is not changed B) needs-tested; induced; decreases C) induced; needs-tested; increases D) discretionary; induced; is not changed E) discretionary; needs-tested; increases
Which is the largest component of aggregate expenditure?
A) consumption expenditures B) government expenditures C) net export expenditures D) planned investment expenditures
In order for a market to be classified as an oligopoly,
a. there must be fewer than 10 firms b. the four largest firms must have 90 percent of the market c. there must be fewer than 5 firms d. the firms must be strategically interacting e. the firms must be strategically independent
Other things the same, if the U.S. price level rises, then
a. the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate rises. b. the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate falls. c. the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate rises. d. the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate falls.