Applie economics Week 3

The law of supply says that ―at higher prices, sellers will supply more of economic goods.

• True

• False

The upward slope of the supply curve illustrates the law of demand— ―higher price leads to a higher quantity supplied, and vice versa‖.

• True

• False

Time is important to supply because suppliers must react quickly to a change in demand or price.

• True

• False

The downward slope of the demand curve illustrates the law of supply—the inverse relationship between prices and quantity demanded.

• True

• False

A shift in a demand or supply curve occurs when quantity demanded or supplied changes even though price remains the same.

• True

• False

Explain the interaction between the sellers of a resource and the buyers for that resource.

• Equilibrium

• The law of demand

• The law of supply

• The law of supply and demand

It states that, higher the price, the higher the quantity supplied.

• The law of supply

• The law of demand

• Constant

• Curve

A movement refers to a change along a _________________.

• Curve

• Line

A shift in a demand or supply curve occurs when a good's quantity demanded or supplied changes even though price remains __________________________.

• Resolute

• Constant

• Intermittent

• Continuous

When Supply and demand are balanced, it is called ____________________.

• Equilibrium

• Balance

• Equal

• Proportionate