Question

Can someone check my answers before i submit it please?

Answer 1

1. Why does an economist create a market demand curve?
a.to learn what demands the market will make under unusual conditions
b.to have an idea of how a market would change if conditions in an area changed
c.to predict how people will change their buying habits when prices change
d.to show how various conditions can change the demand for a good

2. What is the effect of the interaction of buyers and sellers on a market?
a.agreement on the price and the quantity traded
b.association of both supply and demand with income
c.theoretical relationship between price and use
d.desire for goods that cannot actually be afforded

3. What does it mean when an economist says that a consumer has demand for a good or service? a.The consumer is able to afford the good or service but may be unwilling to buy it.
b.The consumer wants the good or service but may not actually have the money for it.
c.The consumer is able to buy the good or service but not at the price demanded.
d.The consumer is willing and able to buy the good or service at the specified price.

4. How does the substitution effect work when the price of an item drops?
a.The item becomes less and less popular as its price drops.
b.The substitutes for the item also suffer a drop in prices.
c.Consumers buy the item as a subsitute for other things.
d.Consumers buy the item even if they do not particularly want it.

5. If prices rise and income stays the same, what is the effect on demand?
a.More is bought of some goods and less of others.
b.Fewer goods are bought.
c.More goods are bought.
d.Demand stays the same.

Answer 2

My answerss are
1. C
2. A
3. D
4. C
5. B