Demand and Supply

What is demand?

• The products and services consumers are likely to purchase.

• The products a costumer would like to buy.

• A service a customer would like to purchase.

• A system of taxpaying.

In terms of Demand, what happens when the price of the products or services increases?

• The demand increases.

• The quantity demanded decreases.

• The quantity demaded increases.

• The demand decreases.

What are the factors which affect the slopping curve of Demand?

• The income effect

• Technology

• The law of diminishing marginal utility

• The substitution effect.

• Tastes/preferences

Regarding "demand", what is the substitution effect? Use a real-life example to explain it.

Regarding "demand", what is the income effect? Use a real-life example to explain it.

Regarding "demand", what is the law of diminishing marginal utility(satisfaction)? Use a real-life example to explain it.

What are the shifters(determiners) of demand?

What is the difference between "Demand" and "Quantity demanded"?

Regarding "demand", there's a direct relationship between "price" and "quantity demanded".

• True

• False

Regarding "supply", there's a direct relationship between "price" and "quantity supplied".

• True

• False