Supply and Demand and Demand Curve

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1. Suppose there are 100 consumers with identical individual demand curves. When the price of a movie ticket is $8, the quantity demanded for each person is 5. When the price is $4, the quantity demanded for each person is 9. Assuming the law of demand holds, which of the following choices is the most likely quantity demanded in the market when the price is $6? Explain and show calculations, While the question asks of the choices given what the quantity demanded will be, there are no choices given. Based on the ratio between the numbers previously given in the answer the quantity demanded is most likely 7. This is because it is the median number between 5 and 9 when the price is the median number between 4 and 8. Ergo the quantity…show more content…
Give two examples. One factor that might have shifted this demand curve is a change in taste and/or preferences. Say this demand curve was for popcorn. When people really like and want popcorn the demand curve will shift. Another factor that might have shifted this demand curve is a change in price for a complement like cheese spread. If the price of cheese spread for popcorn is reduced then the demand for cheese spread and thus popcorn would increase, shifting the demand curve for popcorn. 7. If more people enter medical school, we can expect: If more people entered medical school we can expect that there will be more doctors and nurses in 4-8 years. This in turn would cause an increase in the amount of doctors. This would also decrease the quantity demanded for doctors as there would be a surplus of them in the field. This is not to say the demand for doctors would decrease as there will always be a need for doctors. 8. A technological improvement in the production of good X causes the; EXPLAIN your answer: a. demand curve for X to shift to the right. b. demand curve for X to shift to the left. c. supply curve for X to shift to the right. d. supply curve for X to shift to the left. A technological improvement in production means that more of that good can be produced. When more of a product can be produced then more of it can sell thus making the company more money at a lower cost to them. A supply curve shows the
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