What does the demand function represent?

The demand function is a mathematical representation of the relationship between the quantity demanded (X) of a good and its price (P), assuming other factors remain constant.

Fill in the blank: The demand curve typically slopes ___ from left to right.

Downward

True or False: An increase in the price of a commodity will typically lead to an increase in the quantity demanded.

False. An increase in price usually leads to a decrease in quantity demanded.

Which factors, apart from price, can influence demand?

The factors include prices of other goods (substitutes and complements), consumer income, and consumer's tastes and preferences.

Riddle: I am a curve that shows how price affects quantity, sloping downwards, I help understand demand. What am I?

The demand curve

In the equation X = f(P), what does each variable represent?

X represents the quantity demanded, and P represents the price of the good.

Fill in the blank: Demand refers to the quantity that a consumer is both ___ and ___ to buy.

Willing; able

What is the graphical representation of the relationship between price and quantity demanded called?

The demand curve

MCQ: Which of the following factors does NOT directly affect the demand for a good? A) Consumer income B) Price of substitutes C) The weather D) Consumer preferences

C) The weather

What is a function in mathematics?

A function is a relationship between two variables, x and y, denoted as y=f(x), where each value of x corresponds to a unique value of y.

The demand function is represented as ___ and indicates the relationship between ___ and ___?

X = f(P); it indicates the relationship between quantity demanded X and price P.

True or False: An increasing function is characterized by the value of y decreasing as x increases.

False. An increasing function is characterized by the value of y not decreasing as x increases.

Fill in the blank: A function is decreasing if the value of y does not ___ with an increase in x.

Increase

What does the graphical representation of a function y=f(x) indicate?

It visually represents the relationship between the independent variable x and the dependent variable y.

Riddle: I can be increasing or decreasing, my values depend on your choice. What am I?

A function

In economics, the independent variable is often plotted on the ___ axis and the dependent variable on the ___ axis.

Vertical; horizontal

How would you describe the graphical representation of an increasing function?

It is depicted as an upward-sloping line.

If the function is represented by y = 50 - x, what type of function is this?

What determines whether a function is classified as increasing or decreasing?

A function is increasing if the value of y does not decrease with an increase in x; it is decreasing if the value of y does not increase with an increase in x.

The Law of Demand states that when the price of a commodity increases, the quantity demanded ___, assuming other factors remain constant.

Decreases

Fill in the blanks: A drop in the price of bananas results in an increase in the quantity demanded due to the ___ effect and the ___ effect.

Substitution; income

True or False: A linear demand curve can be represented by the formula Q = a - bP, where Q is quantity demanded, P is price, a is the intercept, and -b is the slope.

True

If the price of bananas is reduced from P1 to P2, what happens to the consumer's budget set?

The budget set expands, allowing the consumer to purchase more bananas and fewer mangoes.