2. Demand, Supply, and Market Equilibrium

What is microeconomics

• small medium enterprises

• the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services

• a study on the economy for the poor people

What is the law of demand?

•  a negative relationship between price and quantity demanded. when the price falls, the quantity demanded increases while when the price increases, the quantity demanded decreases

• a positive relationship between price and quantity demanded. As the price falls, the quantity demanded decreases; as the price increases, the quantity demanded increases

• a positive relationship between price and quantity demanded. when the price falls, the quantity demanded increases while when the price increases, the quantity demanded decreases

• a positive relationship between price and quantity demanded. when the price falls, the quantity demanded increases while when the price increases, the quantity demanded decreases

• a negative relationship between price and quantity demanded. As the price falls, the quantity demanded decreases; as the price increases, the quantity demanded increases

Those are some factors that shift the demand curve, except....

• The income available to the household.

• The price of the product in question.

• The prices of other products available to the household.

• The household’s tastes and preferences.

Those are some factors that influence the number of quantity supplied, except .....

• the price of the goods or services

• the cost of production

• the prices of related products

• taste or preference

What happens to the demand curve of air planes if the price of bus increases?

• The demand curve of air planes moves along the demand curve

• The demand curve of air planes shifts to the right

• The demand curve of air planes shifts to the left

Market is formed by the mechanism of demand and supply. When consumers earn more income, what happen to the demand curve?

• the demand curve moves along the demand curve

• the demand curve shifts to the right

• the demand curve shifts to the left

equilibrium is a condition where....

• quantity supplied is the same as quantity demanded

• quantity supplied is more than the quantity demanded

• quantity supplied is equal to the price

what happens if the consumer's income increases....

• demand for normal goods will decrease

• demand for normal goods increase

• demand for inferior goods increase

What happens to the demand curve of Sugar if the price of coffee increases?

• The demand curve of sugar will shift to the right

• The demand curve of sugar will shift to the left

• The demand curve of sugar will move along the demand curve

what happens to quantity supplied when the firms find a more efficient machine

• quantity supplied increases

• quantity supplied decreases

•  quantity supplied does not change