The Law of Demand . Concept Introduction : Law of Demand : The law of demand states that the quantity demanded of a good decreases with an increase in its price level and vice versa. In other words, there is an inverse relationship between the quantity demanded and price of a good or a service. The law is based on the assumption of ceteris paribus , that is, when all other factors affecting the demand remain constant.

Question

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Answer 1

Question

Chapter 3, Problem 3.1LO

To determine

:

The Law of Demand.

Concept Introduction:

Law of Demand:

The law of demand states that the quantity demanded of a good decreases with an increase in its price level and vice versa. In other words, there is an inverse relationship between the quantity demanded and price of a good or a service. The law is based on the assumption of ceteris paribus , that is, when all other factors affecting the demand remain constant.

Expert Solution & Answer

Explanation of Solution

:

The law of demand is a fundamental economic principle. The exogenous factors such as the consumer income, consumer tastes and preferences, prices of complements and substitutes are assumed to be constant.

The figure below shows a downward sloping demand curve from left to right based on the law of demand. When the price of the good is $30, the quantity demanded is 50 thousand units and when the price increases to $60, the quantity demanded falls to 20 thousand units and so on.

Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition), Chapter 3, Problem 3.1LO

Algebraically, the law of demandis stated in partial derivatives (assuming Ceterus-Paribus) as follows:

∂Q∂P≤0

Here,

‘ Q’= Quantity demanded of a good

‘ P’= Price of the good.

It implies that for a unit in price the change in the quantity demanded is ≤ 0 or negative proportional or positive greater than proportional.

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Answer 2

Question

Chapter 3, Problem 3.1LO

To determine

:

The Law of Demand.

Concept Introduction:

Law of Demand:

The law of demand states that the quantity demanded of a good decreases with an increase in its price level and vice versa. In other words, there is an inverse relationship between the quantity demanded and price of a good or a service. The law is based on the assumption of ceteris paribus , that is, when all other factors affecting the demand remain constant.

Expert Solution & Answer

Explanation of Solution

:

The law of demand is a fundamental economic principle. The exogenous factors such as the consumer income, consumer tastes and preferences, prices of complements and substitutes are assumed to be constant.

The figure below shows a downward sloping demand curve from left to right based on the law of demand. When the price of the good is $30, the quantity demanded is 50 thousand units and when the price increases to $60, the quantity demanded falls to 20 thousand units and so on.

Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition), Chapter 3, Problem 3.1LO

Algebraically, the law of demandis stated in partial derivatives (assuming Ceterus-Paribus) as follows:

∂Q∂P≤0

Here,

‘ Q’= Quantity demanded of a good

‘ P’= Price of the good.

It implies that for a unit in price the change in the quantity demanded is ≤ 0 or negative proportional or positive greater than proportional.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 3, Problem 3.1LO

To determine

:

The Law of Demand.

Concept Introduction:

Law of Demand:

The law of demand states that the quantity demanded of a good decreases with an increase in its price level and vice versa. In other words, there is an inverse relationship between the quantity demanded and price of a good or a service. The law is based on the assumption of ceteris paribus , that is, when all other factors affecting the demand remain constant.

Expert Solution & Answer

Explanation of Solution

:

The law of demand is a fundamental economic principle. The exogenous factors such as the consumer income, consumer tastes and preferences, prices of complements and substitutes are assumed to be constant.

The figure below shows a downward sloping demand curve from left to right based on the law of demand. When the price of the good is $30, the quantity demanded is 50 thousand units and when the price increases to $60, the quantity demanded falls to 20 thousand units and so on.

Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition), Chapter 3, Problem 3.1LO

Algebraically, the law of demandis stated in partial derivatives (assuming Ceterus-Paribus) as follows:

∂Q∂P≤0

Here,

‘ Q’= Quantity demanded of a good

‘ P’= Price of the good.

It implies that for a unit in price the change in the quantity demanded is ≤ 0 or negative proportional or positive greater than proportional.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 3, Problem 3.1LO

To determine

:

The Law of Demand.

Concept Introduction:

Law of Demand:

The law of demand states that the quantity demanded of a good decreases with an increase in its price level and vice versa. In other words, there is an inverse relationship between the quantity demanded and price of a good or a service. The law is based on the assumption of ceteris paribus , that is, when all other factors affecting the demand remain constant.

Expert Solution & Answer

Explanation of Solution

:

The law of demand is a fundamental economic principle. The exogenous factors such as the consumer income, consumer tastes and preferences, prices of complements and substitutes are assumed to be constant.

The figure below shows a downward sloping demand curve from left to right based on the law of demand. When the price of the good is $30, the quantity demanded is 50 thousand units and when the price increases to $60, the quantity demanded falls to 20 thousand units and so on.

Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition), Chapter 3, Problem 3.1LO

Algebraically, the law of demandis stated in partial derivatives (assuming Ceterus-Paribus) as follows:

∂Q∂P≤0

Here,

‘ Q’= Quantity demanded of a good

‘ P’= Price of the good.

It implies that for a unit in price the change in the quantity demanded is ≤ 0 or negative proportional or positive greater than proportional.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 3.1LO

To determine

:

The Law of Demand.

Concept Introduction:

Law of Demand:

The law of demand states that the quantity demanded of a good decreases with an increase in its price level and vice versa. In other words, there is an inverse relationship between the quantity demanded and price of a good or a service. The law is based on the assumption of ceteris paribus , that is, when all other factors affecting the demand remain constant.

Expert Solution & Answer

Explanation of Solution

:

The law of demand is a fundamental economic principle. The exogenous factors such as the consumer income, consumer tastes and preferences, prices of complements and substitutes are assumed to be constant.

The figure below shows a downward sloping demand curve from left to right based on the law of demand. When the price of the good is $30, the quantity demanded is 50 thousand units and when the price increases to $60, the quantity demanded falls to 20 thousand units and so on.

Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition), Chapter 3, Problem 3.1LO

Algebraically, the law of demandis stated in partial derivatives (assuming Ceterus-Paribus) as follows:

∂Q∂P≤0

Here,

‘ Q’= Quantity demanded of a good

‘ P’= Price of the good.

It implies that for a unit in price the change in the quantity demanded is ≤ 0 or negative proportional or positive greater than proportional.

Answer 6

Chapter 3, Problem 3.1LO

To determine

:

The Law of Demand.

Concept Introduction:

Law of Demand:

The law of demand states that the quantity demanded of a good decreases with an increase in its price level and vice versa. In other words, there is an inverse relationship between the quantity demanded and price of a good or a service. The law is based on the assumption of ceteris paribus , that is, when all other factors affecting the demand remain constant.

Expert Solution & Answer

Explanation of Solution

:

The law of demand is a fundamental economic principle. The exogenous factors such as the consumer income, consumer tastes and preferences, prices of complements and substitutes are assumed to be constant.

The figure below shows a downward sloping demand curve from left to right based on the law of demand. When the price of the good is $30, the quantity demanded is 50 thousand units and when the price increases to $60, the quantity demanded falls to 20 thousand units and so on.

Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition), Chapter 3, Problem 3.1LO

Algebraically, the law of demandis stated in partial derivatives (assuming Ceterus-Paribus) as follows:

∂Q∂P≤0

Here,

‘ Q’= Quantity demanded of a good

‘ P’= Price of the good.

It implies that for a unit in price the change in the quantity demanded is ≤ 0 or negative proportional or positive greater than proportional.

Answer 7

Chapter 3, Problem 3.1LO

To determine

:

The Law of Demand.

Concept Introduction:

Law of Demand:

The law of demand states that the quantity demanded of a good decreases with an increase in its price level and vice versa. In other words, there is an inverse relationship between the quantity demanded and price of a good or a service. The law is based on the assumption of ceteris paribus , that is, when all other factors affecting the demand remain constant.

Answer 8

Expert Solution & Answer

Explanation of Solution

:

The law of demand is a fundamental economic principle. The exogenous factors such as the consumer income, consumer tastes and preferences, prices of complements and substitutes are assumed to be constant.

The figure below shows a downward sloping demand curve from left to right based on the law of demand. When the price of the good is $30, the quantity demanded is 50 thousand units and when the price increases to $60, the quantity demanded falls to 20 thousand units and so on.

Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition), Chapter 3, Problem 3.1LO

Algebraically, the law of demandis stated in partial derivatives (assuming Ceterus-Paribus) as follows:

∂Q∂P≤0

Here,

‘ Q’= Quantity demanded of a good

‘ P’= Price of the good.

It implies that for a unit in price the change in the quantity demanded is ≤ 0 or negative proportional or positive greater than proportional.