Practice (DEMAND & SUPPLY)

What is demand?

• Willingness to buy a specific good and services for a given price

• Willingness to sell a specific good and services for a given price

• An increase in the price, a decrease in the quantity demanded

• An increase in the price causes an increase in the quantity demanded.

What is supply?

• Willingness to buy a specific good and services for a given price

• Willingness to sell a specific good and services for a given price

• An increase in the price, a decrease in the quantity supplied

• An increase in the price causes an increase in the quantity supplied

What is the law of demand?

• An increase price causes an increase quantity demanded.

• An increase in the price, a decrease in the quantity supplied

• An increase in the price, a decrease in the quantity demanded

• An increase in the price causes an increase in the quantity supplied.

What is the law of supply?

• An increase in the price, a decrease in the quantity supplied

• An increase price causes an increase quantity demanded.

• An increase in the price, a decrease in the quantity demanded

• An increase in the price causes an increase in the quantity supplied

If price is RM8 per unit, quantity demanded will equal:

• 4 units

• 6 units

• 8 units

• 10 units

If quantity demanded are 10 units, price will equal:

• RM12

• RM10

• RM8

• RM2

Calculate the demand function when the price increase from RM2 to RM4 and quantity demanded decrease from10 units to 8 units?

• Qd=12-1P

• Qd=10+2P

• Qd=12+1P

• Qd=10-2P

What are the determinants of demand?

i. Technology

ii. Taste

iii. Income

iv. Price of related goods

• i and ii

• ii, iii, iv

• ii and iii

• i, ii and iv

If price is RM12 per unit, quantity supplied will equal:

• 9 units

• 6 units

• 3 units

• 12 units

If quantity supplies are 18 units, price will equal:

• RM21

• RM15

• RM12

• RM9