Question

Complete the following table by selecting the term that matches each definition.

Definition	Quantity Demanded	Demand Curve	Demand Schedule	Law of Demand
The claim that, ceteris paribus, the quantity demanded of a good falls when the price of that good rises
A graphical representation of the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices
A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices
The amount of a good that buyers are willing and able to purchase at a given price

Apply your understanding of the previous key terms by completing the following scenario with the appropriate terminology.

Your boss would like your help on a marketing research project he is conducting on the relationship between the price of soup and the quantity of soup demanded. He hands you the following document:

Price of Soup	Quantity of Soup Demanded
(Dollars per can)	(Billions of cans)
0.50	2,000
0.75	1,500
1.00	1,000
1.25	750

Your task is to take this    and construct a graphical representation of the data. In doing so, you determine that as the price of soup rises, the quantity of soup demanded decreases. This confirms the   .

Answer 1

Complete the following table by selecting the term that matches each definition.

Definition	Quantity Demanded	Demand Curve	Demand Schedule	Law of Demand
The claim that, ceteris paribus, the quantity demanded of a good falls when the price of that good rises. (This is the statement of the law of demand that when the price falls, quantity demanded rises and vice versa provided other things remains constant)				√
A graphical representation of the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices. (It is the diagrammatic representation of the demand schedule)		√
A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices (A demand schedule is the tabular representation of the various quantities demanded at different prices)			√
The amount of a good that buyers are willing and able to purchase at a given price. (Demand is the desire backed by willingness to have and ability to pay)	√

Apply your understanding of the previous key terms by completing the following scenario with the appropriate terminology.

Your boss would like your help on a marketing research project he is conducting on the relationship between the price of soup and the quantity of soup demanded. He hands you the following document:

Price of Soup	Quantity of Soup Demanded
(Dollars per can)	(Billions of cans)
0.50	2,000
0.75	1,500
1.00	1,000
1.25	750

Price 1.4 0.8 0.6 Series1 0.4 0 Quantity 1,000 1,500 2,000 2,500 Demaned 0 0 500

Your task is to take this demand schedule and construct a graphical representation of the data. In doing so, you determine that as the price of soup rises, the quantity of soup demanded decreases. This confirms the Law of Demand.