首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
In economics, demand implies something slightly different from the common meaning of the term. The layman, for example, often us
In economics, demand implies something slightly different from the common meaning of the term. The layman, for example, often us
admin
2012-06-18
36
问题
In economics, demand implies something slightly different from the common meaning of the term. The layman, for example, often used the term to mean the amount that is demanded of an item. Thus,if the price were to decrease and individuals wanted more of the item, it is commonly said that demand increases. To an economist, demand is a relationship between a series of prices and a series of corre-sponding quantities that are demanded at these prices. If one reads the previous sentences carefully, it should become apparent that there is a distinction between the quantity demanded and demand. This distinction is often a point of confusion and we all should be aware of and understand the difference between these two items. We repeat, therefore, that demand is a relationship between price and quantities demanded,and therefore suggests the effect of one (e.g., price) on the other (e.g. quantity demanded). Therefore, knowledge of the demand for a product enables one to predict how much more of a product will be purchased if price decreases. But the increase in quantity demanded does not mean demand has increased, since the relationship between price and quantity (i.e., the demand for the product) has not changed. Demand shifts when there is a change in income, expectations, tastes,etc., such that a different quantity of the product is demanded at the same price.
In almost all cases, a consumer wants more of an item if the price decreases. This relationship between price and quantity demanded is so strong that it is referred to as the’law of demand". This"law"can be explained by the income and substitution effects. The income effect occurs because price increas-es reduce the purchasing power of the individual and,thus,the quantity demanded of goods must de-crease. The substitution effect reflects the consumer’s desire to get the "best buy". Accordingly, if the price of product A increases, the individual will tend to substitute another product and purchase less of goods A. The negative correlation between price and quantity demanded is also explained by the law of diminishing marginal utility. According to this law, the additional utility the consumer gains from consum-ing a product decreases as successively more units of the product are consumed. Because the additional units yield less utility or satisfaction, the consumer is willing to purchase more only if the price of the product decreases.
Economists distinguish between individual and market demand. As the term implies, individual demand concerns the individual consumer and illustrate the quantities that individuals demand at different prices. Market demand includes the demand of all individuals for a particular goods and is found by summing the quantities demanded by all individuals at the various prices.
The other side of the price system is supply. As in the case of demand, supply is a relationship between a series of prices and the associated quantities supplied. It is assumed that as price increases the individual or firm will supply greater quantities of a product. There is a positive correlation between quantity supplied and product price.
Economists also distinguish between a change in supply and quantity supplied. The distinction is similar to the one made with respect to demand. Also, as in the case of demand, economists distinguish between individual firm supply and market supply, which is the summation of individual supply.
Taken together, supply and demand yield equilibrium of price and quantity. Equilibrium is a state of stability, with balanced forces in which prices and quantity will remain constant. Moreover, there are forces in the market that will act to establish equilibrium if changes in demand or supply create disequilibrium. For example, if prices are above equilibrium, the quantity supplied exceeds quantity demanded and surpluses occur that have a downward pressure on prices. These pressures will persist until equilibrium is established. If prices are below equilibrium, the product will become scare and there will be an upward pressure on price.
According to the passage, the law of diminishing marginal utility_____.
选项
A、is explained by income and substitution effects
B、explains why the additional units yield less utility
C、slows that the additional units yield less satisfaction
D、(effects the consumer’s desire to get the cheapest buy
答案
C
解析
细节题。根据第二段的末尾“According to this law,the additional utility the consumer gains fromconsuming a product decreases as successively more units of the product are consumed.Becausethe additional units yield less utility or satisfaction…”可知,“the law of diminishing marginal utility”的内容包括“the additional units yield less utility or satisfaction”,即选项C是正确答案。而它是用来解释“the additional utility the consumer gains from consuming a product decreases…”的。
转载请注明原文地址:https://kaotiyun.com/show/xqnO777K
0
考博英语
相关试题推荐
Despitetheirmanydifferencesoftemperamentandofliteraryperspective,Emerson,Thoreau,Hawthorne,Melville,andWhitmansh
(Although)thewagesforallthemembersoftheworkingstaff(increaseregular),so(theirexpensesdo);forthepricesforeve
Masstransportationrevisedthesocialandeconomic,fabricoftheAmericancityinmanywayssoastopermitaneasyrowoftra
Inthispart,youarerequiredtowriteacompositionentitledOnMistakesinnolessthan200words.Yourcompositionshouldbe
StudentlifeatAmericanuniversitiesischaoticduringthefirstweekofeachquarterorsemester.Registeringforclasses,bec
Animportantcustomermayresentbeing______byanassistantratherthanbytheboss.
Dueinlargeparttothecomplexityofitsstructure--overtwohundredbones______togetherbyligaments--thehumanskeletonis
Inordertoraisemoney,AuntNicolahadtowithsomeofhermosttreasuredpossessions.
Shehadashy,retiringsidetoherpersonalitythatwascompletelyatoddswithherpublic______.
Idon’tmindabitifyoubringyourfriendsinforadrink,butitisrathertoomuchwhentenpeoplearrive____fordinner.
随机试题
女婴,胎龄31周,有宫内窘迫史,生后6天出现腹胀,呕吐,大便为黏液血便,腹部X线片提示膈下游离气体。对该婴儿处理最好的是
河南省农信社“两学一做”学习教育动员会指出:“两学一做”学习教育是全省农信社持续加强党的思想政治建设的重大部署,是全省农信社推动全面从严治党向基层延伸的重要举措,是加强全省农信社党建工作的重要抓手,是推进农信社()的重要保证。
中风中经络属络脉空虚,风邪入中者,治疗时宜选
患者男性,64岁,头晕、胸闷2天。心电图如图3-14-18所示。与上述心电图表现容易混淆的是
合成孕激素包括
按照《会计档案管理办法》的规定,下列说法中正确的有()。
基于排版的需要,标题文字可能需要对齐。在HTML文件中,如果把标题文字向右对齐,下面写法正确的是()。
陈忠实的代表作《白鹿原》中,加入共产党的鹿兆鹏从城里带回革命浪潮,黑娃成为中坚力量,国共分裂后兄弟俩被迫逃亡的时间是()。
在没有打开索引的情况下,以下两条命令执行结果相同的是______。
在关系模型中,每一个二维表称为一个
最新回复
(
0
)