Distinguish between demand and quantity demanded. Do the same for supply and quantity supplied.
What will be an ideal response?
Quantity demanded is the number of units consumers wish to buy at a specific price over a specific period. The quantity demanded depends upon the price charged. Demand, or a demand schedule, shows how the quantity demanded of some product for a specific period will change as the price of the product changes, holding all other determinants of quantity demanded constant. On a demand curve, quantity demanded is a single point.
Similarly, quantity supplied is the number of units sellers are willing to sell over a specific period at a specific price. Supply, or a supply schedule, is a table showing how the quantity supplied of some product for a specific period changes as the price of the product changes, holding all other determinants of quantity supplied constant. In a supply curve, quantity supplied is a single point.
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An example of an intermediate good would be:
A. the rice used to make Chex cereal. B. a bag of Uncle Ben's rice sold to consumers. C. a bag of Quaker's rice cakes sold to consumers. D. All of these are intermediate goods
If the government imposes a price ceiling below the equilibrium price,
a. it must then buy up the surplus that is generated b. there will be an excess demand c. there will be an excess supply d. everyone who wants to buy this good will be happy e. the intent is to benefit producers
When an economy is not using all of its resources, it is producing at a point below its production possibilities frontier
Indicate whether the statement is true or false
If a firm with total revenue of $2 million continues to operate in the short run, we may conclude that its variable costs are __________.
Fill in the blank(s) with the appropriate word(s).