Question

Answer the given two questions relating to demand and the law of demand.

A shift in the demand curve can be caused by: (a) a change in the price of a good. (b) a change in the technology used by firms. (c) a change in one of the determinants of demand. (d) a change in the cost of production.
Which of the choices illustrates the law of demand? (a) Kathy offers for sale more candy bars at $2 than at $1. (b) Joe wants to buy more candy bars at $2 than at $1. (c) None of the choices. (d) Sue wants to buy more candy bars at $1 than at $2.

Answer 1

A shift in the demand curve is caused by a change in one of the demand determinants, not by a change in the price of the good itself. The law of demand is shown when consumers want to buy more of a good at a lower price than at a higher price, as with Sue wanting more candy bars at $1 than at $2.

Step-by-step explanation:

To answer the questions relating to demand and the law of demand, it's important to understand the concepts involved clearly. First, a shift in the demand curve is caused by: (c) a change in one of the determinants of demand. This includes factors such as changes in consumer tastes, income, price of related goods (complements or substitutes), and expectations about future prices. It does not occur because of a change in the price of the good itself, which instead causes a movement along the demand curve.

The choice that illustrates the law of demand is (d) Sue wants to buy more candy bars at $1 than at $2. This is because the law of demand states that, ceteris paribus, when the price of a good falls, the quantity demanded will increase, and vice versa. Therefore, Sue wanting to buy more at a lower price and less at a higher price exemplifies this economic principle.

Answer 2

Answer: First question: The correct answer is (c) a change in one of the determinants of demand.

Second question: The correct answer is (d) Sue wants to buy more candy bars at $1 than at $2.

Explanation:

1) Some of the determining factors of the demand are the price of the product, the income of the consumer, the price of complementary goods or services, the price of substitute products or the taste of the consumer, among others . A change in these determinants produces a shift in the demand curve.

2) The law of demand reflects the relationship between the demand that exists of a good in the market and the quantity of the same that is offered based on the price that is established. At a lower price the demand increases and at a higher price the demand decreases.