Supply and Demand Practice

The amount of goods available:

• Supply

• Demand

• Utility

• Equilibrium

Answer explanation

The amount of goods available in a market is referred to as supply. It represents the total quantity of a product that producers are willing to sell at various prices, distinguishing it from demand, utility, and equilibrium.

The tendency of suppliers to offer more of a good at a higher price:

• Law of Supply

• Law of Demand

• Law of Economics

• Law of Net Income

Answer explanation

The Law of Supply states that as the price of a good increases, suppliers are willing to offer more of it. This reflects the direct relationship between price and quantity supplied, making it the correct choice.

This is a chart that lists how much of a good a supplier will offer at different prices:

• Demand Schedule

• Supply Schedule

• Economics Schedule

• Profit Schedule

Answer explanation

The chart describes how much of a good a supplier will offer at various prices, which defines a Supply Schedule. A Demand Schedule would show consumer willingness to buy at different prices, making 'Supply Schedule' the correct choice.

A supply curve slopes:

• Upward

• Downward

• Vertical

• Not at All

Answer explanation

A supply curve slopes upward because as the price of a good increases, producers are willing to supply more of it. This reflects the direct relationship between price and quantity supplied.

The only thing that causes movement along a supply or demand curve:

• Price

• Quantity

• Climate

• Weather

Answer explanation

The only factor that causes movement along a supply or demand curve is price. Changes in price lead to changes in quantity supplied or demanded, while other factors like climate and weather shift the entire curve.

The desire to own something and the ability to pay for it:

• Supply

• Demand

• Economics

• Schedule

Answer explanation

Demand refers to the desire to own something coupled with the ability to pay for it. In this context, it clearly defines the concept of demand, making it the correct answer.

Consumers buy more of something when it costs less:

• Law of supply

• Law of demand

• Law of purchase

• Law of trade

Answer explanation

The Law of Demand states that as the price of a good decreases, consumers are willing to buy more of it. This principle explains why consumers buy more when it costs less.

Consumers buy a different good when the price of something gets too high:

• Substitution effect

• Income effect

• Weather effect

• Demand effect

Answer explanation

The substitution effect occurs when consumers switch to a different good as the price of a good rises, making alternatives more attractive. This explains why consumers buy a different good when prices get too high.

A demand curve slopes

• Downward

• Upward

• Vertical

• Horizontal

Answer explanation

A demand curve slopes downward because as the price of a good decreases, the quantity demanded typically increases. This inverse relationship is a fundamental principle of demand in economics.

Goods that people buy more of when income increases:

• Normal goods

• Inferior goods

• Expensive goods

• Inexpensive goods

Answer explanation

Normal goods are those that people buy more of as their income increases. In contrast, inferior goods are purchased less when income rises. Therefore, the correct answer is normal goods.