The market forces

An increase in price results in

• A decrease in demand

• A decrease in supply

• A decrease in quantity demanded

• A decrease in quantity supplied

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies, while all the other factors that affect how much consumers want to buy are held constant.

• True

• False

If something happens to alter the quantity demanded at any given price, then the demand curve shifts.

• True

• False

If the demand for a good falls when income falls, then the good is called an inferior good.

• False

• True

When an increase in the price of one good lowers the demand for another good, the two goods are called complements.

• True

• False

If a person expects the price of socks to increase next month, then that person’s current demand for socks will increase.

• True

• False

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

• True

• False

A movement along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied.

• False

• True

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

• False

• True

When the market price is above the equilibrium price, suppliers are unable to sell all they want to sell.

• True

• False