Unit 2 Supply/demand & markets

The amount demanded at single price...

• Quantity demanded

• Law of demand

• Quantity supplied

• Law of supply

Represented by point on the demand curve...

• Quantity demand

• Supply demand

• Quantity supplied

The quantity demand of a good/service varies inversely with price: as price increases as quantity demand decreases (vice versa)-> if something becomes cheaper, more people are willing to buy...

• Law of demand

• Law of supply

Quantity demanded of a service or good varies inversely w/ its price...

• Quantity demand

• Quantity supplied

A movement along a demand curve is the graphical representation of a change in money on the __________

• quantity of the good
• supply of the good
• quantity demanded

Shift in demand is the graphical rep. of the effect of anything other than money on demand

• True

• False

Change in demand is shift in entire demand curve in response to a change in a determinant of demand... (left of right)

• True

• False

As income increases as demand for normal goods....

• increases

• decreases

Substitute Goods: As one good's price increases, the demand for the other good...

• Increases

• Decreases

Complement goods: As price for a good decreases, the demand for the other good...

• decreases

• increases