Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 3: Q.20 (page 78)

What is the difference between the demand and the

quantity demanded of a product, say milk? Explain in

words and show the difference on a graph with a demand

curve for milk.

Short Answer

Expert verified

Demand is simply the willingness of a consumer to purchase different goods & services at different prices.

Quantity demanded is the willingness of a consumer to purchase a specific amount of any goods & services at a specific price.

Step by step solution

01

Step 1. Law of demand

According to the law of demand, an inverse relationship exists between quantity demanded of a product and the price of the product, while other factors affecting the demand remain constant.

02

Step 2.Graphical representation 

Demand is a relation between the willingness of a consumer to purchase different amounts at different prices.

Demand for milk would be the different quantities of milk that the consumers are willing to purchase at various prices.

Quantity demanded of milk is the willingness of a consumer to purchase a specific amount of milk at a specific price.

Explanation:

A downward-sloping demand curve represents the demand for milk at a different level of price.

Y-axis represents the different levels of price & the X-axis represents the quantity demanded at those prices.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Suppose there is a soda tax to curb obesity. What

should a reduction in the soda tax do to the supply of sodas and to the equilibrium price and quantity? Can you show this graphically? Hint: Assume that the soda tax is collected from the sellers.

Table 3.10 shows the supply and demand for movie tickets in a city. Graph demand and supply and identify the equilibrium. Then calculate in a table and graph the effect of the following two changes.

(a) Three new nightclubs open. They offer decent bands and have no cover charge, but make their money by selling food and drink. As a result, demand for movie tickets falls by six units at every price.

(b) The city eliminates a tax that it placed on all local entertainment businesses. The result is that the quantity supplied of movies at any given price increases by 10%.

Price per poundQdQs
\(5.002616
\)6.002418
\(7.002220
\)8.002121
$9.002022

A low-income country decides to set a price ceiling on bread so it can make sure that bread is affordable to the poor. Table 3.11 provides the conditions of demand and supply. What are the equilibrium price and equilibrium quantity before the price ceiling? What will be the excess demand or the shortage (that is, quantity demanded minus quantity supplied) be if the price ceiling is set at \(2.40? At \)2.00? At \(3.60?

PriceQdQs
\)1.609,0005,000
\(2.008,5005,500
\)2.408,0006,400
\(2.807,5007,500
\)3.207,0009,000
\(3.606,50011,000
\)4.006,00015,000

Use the four-step process to analyze the impact

of a reduction in tariffs on imports of iPods on the

equilibrium price and quantity of Sony Walkman-type products.

Review Figure 3.4 again. Suppose the price of gasoline is \(1.00. Will the quantity demanded be lower or higher than at the equilibrium price of \)1.40per gallon? Will the quantity supplied be lower or higher? Is there a shortage or a surplus in the market? If so, of how much?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free