Supply and Demand

A consumer's ability and willingness to buy a good at a series of prices

• supply

• demand

• elasticity

• equilibrium

The law of demand states that

• as prices rise, the demand goes down

• as prices rise, the demand goes up

• price and demand are completely unrelated

• demand increases and so the supply must also increase

The shape of a demand curve

• is flat

• is a vertical line

• slopes up and to the right

• slopes down and to the right

A producer's ability and willingness to sell a good or service at a series of prices is called

• demand

• supply

• the market price

• quantity

The law of supply states that

• Price and quantity demanded have an inverse relationship

• As prices rise, the supply will decrease

• Price and supply have no relation

• As prices rise, the supply too will rise

Why do suppliers supply more when prices are high?

• It is more expensive to make their product

• When prices are higher, they are making more of a profit

• The demand is low

• They want to bring the price down

The shape of a supply curve

• Looks like a parabola

• Slopes down from left to right

• Slopes up from left to right

• Is a vertical line

Which of the following would NOT increase the demand for Apple airpods?

• An increase in consumer income

• An increase in the number of buyers in the market

• A decrease in the price of iPhones

• A decrease in the cost of the factors of production

Advertising can change consumer tastes and can therefore

• Directly affect supply

• Lead to drastic changes in the price

• Cause demand for a product to increase

• Have no effect on consumers

When the demand or supply or a product increases, the curve shifts to the

• left

• right

• there is no shift