Answer:
The answer is explained in the explanation section below
Explanation:
Solution
(1)At the market price of $8, the Demanded Quantity is 20 units per week , and the Quantity Supplied is 60 units.
(2) At this price Surplus exists.
Economic Surplus is a is a situation in which the quantity supplied is higher than the quantity demanded. This situation is also referred to as excess supply.
(3) At price $4 there is an exist shortage
At price $4 The quantity Supplied is 20 units and the Quantity Demanded is 60 units respectively. hence, at price $4 Demand is higher/greater than Supply.
(4) At a price of $6 per unit, the market equilibrium exists
Market equilibrium is a situation when the Quantity Demanded of a commodity by the consumer is the same to the respective Quantity Supplied of that commodity by the producers.
(5) )Quantity Demanded by the consumers is equal to the quantity supplied by the producers. In the equilibrium
At price $4 per unit , the quantity supplied by the producers is equal to 40 units and the quantity demanded by the consumers is equal to 40 units Thus the supplied quantity is equal to the demanded quantity this point.
Choose to do nothing about the problem is always a course of action.
Answer: The correct answer is (A) : Positive upward slope.
Explanation: A demand curve is basically a graph like any other with the variables in potted on both the x-axis (left to right) and the y-axis (top to bottom). Understanding the definition of demand would make it easier to understand why the answer is option A and why the demand curve has a negative downward slope.
Demand can be defined as the quantity of a commodity or service that a consumer is willing and able to buy at a given price and at a particular point in time. And the law of demand states that “other factors being held constant, the higher the price of a commodity, the lower the quantity being demanded by the consumer. And the lower the price of a commodity, the higher the quantity being demanded by a consumer.”
This is simply a rational consumer behavior. So if the price of movie tickets were to go up let’s say from $10 to $15 then a consumer who previously could afford to watch 8 movies in a month (that’s $80) would be having second thoughts and so, rather than spend $120 per month on movie tickets, would be more inclined to watch less movies and stay within his/her $80 budget.
Therefore, on the demand curve, as the price of movie tickets moves positively towards the right side (on the x-axis), the quantity demanded would move negatively downwards (on the y-axis). As one variable increases the other one decreases, and vice versa. That explains why the demand curve has a negative downward slope.