Law of Demand

What does the law of demand tell us?

• Raising the price of a product will decrease the quantity demanded

• Raising the price of a product will increase the quantity demanded

• Lowering the price of a product will increase the quantity demanded

• Lowering the price of a product will decrease the quantity demanded

In a formal economic sense, what does the word 'demand' refer to?

• The relationship between price and quantity demanded

• A specific quantity of a product

• The price of a product

• The relationship between supply and demand

What is a demand schedule?

• A table showing the relationship between price and quantity demanded

• A graph showing the relationship between price and quantity demanded

• A graph showing the relationship between price and demand

• A table showing the relationship between price and demand

What is the relationship between price and quantity demanded according to the law of demand?

• Inversely proportional

• Constant

• Directly proportional

• Unrelated

What does the demand curve represent?

• The relationship between supply and demand

• The relationship between price and demand

• The relationship between price and quantity demanded

• The relationship between quantity demanded and supply

What happens to the demand curve when demand changes?

• It becomes flatter

• It disappears

• It becomes steeper

• It shifts

What does the quantity demanded refer to?

• The price of a product

• The specific quantity of a product demanded at a given price

• The relationship between supply and demand

• The relationship between price and quantity demanded

What does the term 'demand' refer to in economics?

• The price of a product

• The relationship between supply and demand

• The relationship between price and quantity demanded

• The specific quantity of a product demanded at a given price

What does the law of demand say about the relationship between price and quantity demanded?

• They are constant

• They are directly proportional

• They are inversely proportional

• They are unrelated

What is the demand curve a representation of?

• The relationship between supply and demand

• The relationship between price and quantity demanded

• The relationship between quantity demanded and supply

• The relationship between price and demand