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Consumers will buy more when prices go down and less when prices go up.
A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa.
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What is the difference between demand function and demand curve?
demand curve shows quantities that the consumer is willing and able to buy at various prices in a given period of time,other things being equal. Whereas, a budget line is a graph showing all the possible combinations of two goods that can be purchased at given prices and for a given budget.
What is the relationship between the law of supply?
As demand increases, supply increases, and as demand decreases, supply decreases. (Assuming Ceteris Paribus (All other factors are held constant))
Ceteris paribus or all other things held constant is an assumption that has what effect on a demand schedule?
It takes only prices into account.
If All else is constant an increase in a firm's cost of debt will do what?
will result in an increase in the firm's cost of capital.
Why are all goods scarce?
Generally, because supplies are never infinite, the opposite of scarce. For many goods, demand is constant or growing, and supply is NOT.
What happens to the volume of a gas when the number of moles doubles ( all else held constant )?
When the number of moles of a gas doubles and all else is constant, then the volume also doubles.
What is the difference between demand function and demand curve?
demand curve shows quantities that the consumer is willing and able to buy at various prices in a given period of time,other things being equal. Whereas, a budget line is a graph showing all the possible combinations of two goods that can be purchased at given prices and for a given budget.
What is the relationship between the law of supply?
As demand increases, supply increases, and as demand decreases, supply decreases. (Assuming Ceteris Paribus (All other factors are held constant))
What happens to the volume of a gas when the number of moles is doubled (all else held constant)?
At a constant volume the pressure increase.
What happens to the volume of a gas when the number of moles doubles ( all else held )?
When the number of moles of a gas doubles and all else is constant, then the volume also doubles.
Ceteris paribus or all other things held constant is an assumption that has what effect on a demand schedule?
It takes only prices into account.
If All else is constant an increase in a firm's cost of debt will do what?
will result in an increase in the firm's cost of capital.
Why are all goods scarce?
Generally, because supplies are never infinite, the opposite of scarce. For many goods, demand is constant or growing, and supply is NOT.
How does ceteris paribus affects demand curve?
Ceteris Paribus is greek for all others being equal. This is crucial to any economic analysis not just demand and supply since one can't control all the factors. Therefore, when shifting a demand (or supply) surve, we assume that only one factor is causing it to shift and all other factors that can shift the demand curve stays constant.
Extension in demand?
Google SearchWhat's New in A Level EconomicsPositive consumption externalitiesPositive Production externalitiesNegative Consumption externalitiesNegative Production ExternalitiesExternalitiesChanges in demand | extension, contraction, fall , riseMovement along the demand CurveExtension of demandExtension of demand is the increase in demand due to the fall in price, all other factors remaining constant. Contraction of demandContraction of demand is the fall in demand due to the rise in price, all other factors remaining constant. Shift in the demand curveUsually demand curves are drawn based on the assumption except for price all other factors remain the same. But there might be instances when demand may be affected by factors other than price. This will result in the change in demand although the price will remain the same. This change in demand may cause the demand curve to SHIFT inwards or outwards.Shift of demand curve OUTWARDS shows an increase in demand at the same price level. It is known as INCREASE IN DEMAND.Shift of demand curve INWARDS shows that less is demanded at the same price level. It is known as a FALL IN DEMAND.
State and explain the law of demand?
The law of demand states that there an inverse relation between change in price of good and the consequent change in demand for bad goods, assuming no change in all other factors influencing demand for that good.
Ceteris paribus or all other things held constant is an assumption that has what effects on demand schedule?
It assumes only prices will change. -458 :D
