tailieunhanh - Câu hỏi đánh giá môn Kinh tế vĩ mô bằng tiếng Anh- Chương 4

Tham khảo tài liệu 'câu hỏi đánh giá môn kinh tế vĩ mô bằng tiếng anh- chương 4', kinh tế - quản lý, kinh tế học phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Chapter 4 Individual and Market Demand CHAPTER 4 Formatted Font Times New Roman 12 pt Formatted Space Before line After line Line spacing lines INDIVIDUAL AND MARKET DEMAND Formatted Font Times New Roman Formatted Font Times New Roman 12 pt QUESTIONS FOR REVIEW 1. Explain the difference between each of the following terms a. a price consumption curve and a demand curve A price consumption curve identifies the utility maximizing combinations of two goods as the price of one of the goods changes. When the price of one of the goods declines the budget line will pivot outwards and a new utility maximizing bundle will be chosen. The price consumption curve connects all such bundles. A demand curve is a graphical relationship between the price of a good and the utility maximizing quantity demanded of a good all else the same. Price is plotted on the vertical axis and quantity demanded on the horizontal axis. b. an individual demand curve and a market demand curve An individual demand curve identifies the utility maximizing quantity demanded by one person at any given price of the good. A market demand curve is the sum of the individual demand curves for any given product. At any given price the market demand curve identifies the quantity demanded by all individuals all else the same. c. an Engel curve and a demand curve A demand curve identifies the quantity demanded of a good for any given price holding income and all else the same. An Engel curve identifies the quantity demanded of a good for any given income holding prices and all else the same. d. an income effect and a substitution effect 41 Chapter 4 Individual and Market Demand The substitution effect measures the effect of a change in the price of a good on the consumption of the good utility held constant. This change in price changes the slope of the budget line and causes the consumer to rotate along the current indifference curve. The income effect measures the effect of a change in purchasing .