LECTURE 2

SUPPLY is

• quantity supplied

• quantity supplied at the specific price

• price is set to determine the quantity supplied

• provide what buyers/consumers demanded

DEMAND is

• producers are producing goods & services to meet the demand

• what has been demanded from the product

• Buyers' willingness/ability to pay for the goods & services at the given price

• I think the answers given are all wrong

The law of demand is

• the cheaper the price, the lesser the demand for the good/service

• the cheaper the price, the demand is constant for the good/service

• the higher the price, the lesser the demand for the good/service

• the cheaper the price, the higher the demand for the good/service

The law of supply is

• the higher the price, the lesser the good/service will be supplied

• the lesser the price, the lesser the good/service will be supplied

• the higher the price, the higher the good/service will be supplied

• I don't think so there are any correct answers here

Demand increases with the supply being the same will lead to

Supply increases with the demand being constant/decreases will lead to

Supply decreases and the demand increases will lead to

Movement along the demand curve will occur when

• Price changes

• a change in price

• the supply remain constant

• substitution effect

Supply curve shifts due to

• Income effect

• Technology

• price of raw materials

• expectation/anticipation/forecast

Demand curve shifts due to

• Expectations

• complementary effects

• competition

• taste and preferences