Supply and Demand Concepts

Front

What does the Law of Supply state?

Back

As price increases, quantity supplied increases

Front

What does the Law of Demand state?

Back

As price decreases, quantity demanded increases

Front

What is the primary difference between demand and quantity demanded?

Back

Demand is the relationship between price and quantity demanded, while quantity demanded is a specific amount.

Front

Which of the following causes a movement along the demand curve (change in quantity demanded)? A change in consumer income, A change in the price of the good, A change in consumer preferences, A change in the price of substitute goods

Back

A change in the price of the good

Front

Which of the following causes a movement along the supply curve (change in quantity supplied)?
A change in government policy
A change in the cost of inputs
A change in the price of the good
A change in technology

Back

A change in the price of the good

Front

What happens to demand when consumer income increases?

Back

Demand curve shifts right

Front

How do changes in consumer tastes and preferences affect demand?

Back

They can shift the demand curve right or left.

Front

If consumers expect prices to drop in the future, what is likely to happen?

Back

Current demand decreases

Front

What happens when the price of a substitute good increases?

Back

Demand for the original good increases.

Front

How do complementary goods affect demand?

Back

Price changes in one good affect demand for the other