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

Want to see more full solutions like this?

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 (19th Edition) (Pearson Series in Economics), 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!

Students have asked these similar questions

Not use ai please

South Africa faces the triple challenge of poverty, inequality and unemployment and the national minimum wage debate has pulled on all three threads to make arguments for and against this policy. Discuss the theoretical implications of a national minimum wage, and touching on each of the three challenges South Africa faces, discuss some arguments for how this policy may affect them.

In the context of the article below, discuss the Minister’s position in light of the principles of fairness as they relate to taxation. SA's work visa reform plans slowed by tax issues South Africa’s plan to attract more professionals to its skills-starved economy through the introduction of a so-called nomad visa for remote workers has been slowed by the need to amend tax regulations. The impediment comes after an initial delay when changes to the visa regime had to be temporarily withdrawn because mandatory public consultation procedures hadn’t been followed. President Cyril Ramaphosa announced his intention to introduce a remote-working visa in his 2022 state-of-the-nation address. “There is just a tax-related matter that needs to be addressed in the regulations,” Leon Schreiber, the country’s Home Affairs Minister, said in a response to queries. “Once that is done, the department will commence with the rollout.” South Africa’s byzantine work permit regime, which means…

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 (19th Edition) (Pearson Series in Economics), 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 (19th Edition) (Pearson Series in Economics), 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 (19th Edition) (Pearson Series in Economics), 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 (19th Edition) (Pearson Series in Economics), 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 (19th Edition) (Pearson Series in Economics), 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 (19th Edition) (Pearson Series in Economics), 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.