Demand and Supply

The willingness and ability to buy something in a given time period.

• supply

• demand

• law of supply

• law of demand

The willingness and ability to sell something in a given time period.

• supply

• demand

• law of supply

• law of demand

The amount of a good consumers are willing and able to buy at a specific price.

• Quantity supplied

• demand

• supply

• Quantity demand

The amount of a good producers are willing and able to sell at a specific price.

• Quantity supplied

• demand

• supply

• Quantity demand

Which statement reflects the inverse relationship between quantity demanded and price? (check all that apply)

• As price goes up, quantity demanded goes up.

• As price goes up, quantity demanded goes down.

• As price goes down, quantity demanded goes up

• As price goes down, quantity demanded goes down.

Which statement reflects the direct relationship between quantity supplied and price? (check all that apply)

• As price goes up, quantity supplied goes up.

• As price goes up, quantity supplied goes down.

• As price goes down, quantity supplied goes up

• As price goes down, quantity supplied goes down.

Peanut butter and jelly are often purchased together by consumers. Economists would say these two goods are

• subsidies

• substitutes

• complements

• normal goods

Consumers will purchase beef if the price of pork increases. Economists would say these two goods are

• subsidies

• substitutes

• complements

• normal goods

The Law of Demand states that as price increases, quantity demanded ( ).

Complete the statement

The Law of Supply states that as price increases, quantity demanded ( ).