Question

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different pr Table 3.1 Price per DVD Quantity Demanded 1 Quantity Demanded Quantity Demanded 2 25 15 30 35 55 23. Refer to Table 3.1. Calculate the market demand at prices $5, $4, S3, S2, and $1 respectively. a. Market demand is 30, 40, 50, 60, and 70 b. Market demand is 30, 60, 90, 120, and 150 c. Market demand is 30, 50, 70, 90, and 1,100 d. Market demand is 10, 30, 40, 50, and 70 e. Market demand is 10, 20, 30, 40, and 50 24. Which of the following will cause a leftward shift in the demand for steaks at a restaurant? a. A report by the American Medical Association states that the consumption of steak reduces the risk of cardiovascular disease b. A 50 percent reduction in the price of steaks c. A double-digit increase in the price of chicken d. A recession leading to a significant fall in the income levels of consumers e. The expectation that the price of steaks will double within two months 25. The relationship between prices and the corresponding quantities supplied is shown in a a. supply schedule. b. demand schedule. c. price-earnings ratio. d. production possibilities curve. e. total output schedule. 26. Assume that Ford Motor Company engineers achieve a revolutionary technological breakthrough in the production process of automobiles. Which of the following is expected to take place? a. A movement up along the existing supply curve for Ford automobiles b. The supply of Ford automobiles will remain unchanged c. An inward shift of the supply curve for Ford automobiles d. A downward movement along an existing supply curve for Ford automobiles e. An outward shift of the supply curve for Ford automobiles

Answer 1

23. (b) market demand is 30,60,90,120 and 150 at $5, $4, $3, $2, $1 respectively

Price($)	Quantity Demanded 1	Quantity Demanded 2	Quantity Demanded 3	Market demand (Q1+Q2+Q3)
5	10	15	5	30
4	20	25	15	60
3	30	35	25	90
2	40	45	35	120
1	50	55	45	150

24. (d) A recession leading to a significant fall in the income levels of consumers
(because the demand curve will shift leftward due to fall in income)

25. (a) supply schedule
(also known as supply curve shows the relationship between the price of the good and seller willing to supply at that price )

26. (e) an outward shift of the supply curve for Ford automobiles
(because a technological development will reduce the production cost and causing a greater quantity to be produced at any given price which will lead supply curve shift to the right)