Healthcare Economics Midterm
Questions and Correct Answers.
Market - Answer settings where buyers and sellers to trade goods or services with each
other. They can take a real physical place, like the Walmart store or a farmers' market, or they
can be non-physical, that you cannot touch, like ebayand Amazon.
Demand - Answer the amount of a good that buyers are willingand ableto purchase at a
given price. You must be both willing AND able to buy in order to be part of demand. Only one is
not enough
Demand Schedule - Answer is a table that shows the relationship between price of a product
(or service) and the quantity demanded of the same product (or service).
The law of demand - Answer there is an inverserelationship between price and quantity
demanded.
This means that we tend to buy more units when the per unit price is lower, ceteris paribus.
Ceteris paribusmeans that we hold other things unchanged.
Determinants of Demand - Answer Price (own price)
Income
Price of related goods
Tastes and Preferences
Expectations about the future
Number of buyers
Reasons for down-sloping demand curve - Answer •Decreasing marginal benefit
•Substitution Effect
•Income Effect
Market demand is obtained graphically by - Answer horizontal summation
An change in quantity demanded is - Answer movement along the demand
Questions and Correct Answers.
Market - Answer settings where buyers and sellers to trade goods or services with each
other. They can take a real physical place, like the Walmart store or a farmers' market, or they
can be non-physical, that you cannot touch, like ebayand Amazon.
Demand - Answer the amount of a good that buyers are willingand ableto purchase at a
given price. You must be both willing AND able to buy in order to be part of demand. Only one is
not enough
Demand Schedule - Answer is a table that shows the relationship between price of a product
(or service) and the quantity demanded of the same product (or service).
The law of demand - Answer there is an inverserelationship between price and quantity
demanded.
This means that we tend to buy more units when the per unit price is lower, ceteris paribus.
Ceteris paribusmeans that we hold other things unchanged.
Determinants of Demand - Answer Price (own price)
Income
Price of related goods
Tastes and Preferences
Expectations about the future
Number of buyers
Reasons for down-sloping demand curve - Answer •Decreasing marginal benefit
•Substitution Effect
•Income Effect
Market demand is obtained graphically by - Answer horizontal summation
An change in quantity demanded is - Answer movement along the demand
