Question 1

The Law of Demand refers to:

Accepted Answer

A)  a shift in the demand curve that occurs when a variable other than the good's own price changes 
B)  movement along a given good's demand curve when the price of that good changes, but other variables do not. 
C)  the proposition that that price and quantity demanded can be expected to be inversely related so that consumers will be willing and able to buy more of a good at lower prices that they are at higher prices. 
D)  a functional relationship between the various possible prices of a good and the quantity supplied by sellers of it per time period. 
E)  the amounts of a good that that consumers are willing and able to buy and other relevant variables such as income or the prices of other goods.

Question 2

Given the equations Qdh = 500 - 25Ph and Qsh= - 250 + 50 Ph, what is the equilibrium quantity demanded and quantity supplied for fresh Alaskan halibut?

Accepted Answer

A)  375 
B)  250 
C)  125 
D)  500 
E)  425

Question 3

A change in demand refers to the shift in a demand curve that occurs when a demand function variable, other than the price of the item in question, changes.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction, Basic Principles, and Methodology

The Law of Demand refers to:

Given the equations Q_d_h = 500 - 25P_h and Q_s_h= - 250 + 50 P_h, what is the equilibrium quantity demanded and quantity supplied for fresh Alaskan halibut?

A change in demand refers to the shift in a demand curve that occurs when a demand function variable, other than the price of the item in question, changes.