Supply and Demand

Front

Custom and tradition dictate what to produce, how to produce, and for whom. This scenario represents what form of economy?

Back

Traditional Economy

Front

The state owns the factors of production. Economic planning is done by the government. Central planning committee attempts to perform functions of a market. This scenario represents what form of economy?

Back

Traditional Economy

Front

The Law of Demand states "As price increases, the quantity (amount) purchased by consumers (the people buying the good/service)..."

Back

Decreases

Front

The Law of Demand states "When the price of a good or service decreases, the quantity (amount) demanded for the good or service..."

Back

Increases

Front

True or False: A change in price does NOT change demand. It changes the quantity demanded.

Back

True

Front

An example of a factor that will shift the demand curve is: changes in consumer income, changes in number of consumers, change in price of a substitute good, change in price of a complimentary good, change in consumers taste or preference, change in consumer expectations.

Back

changes in consumer income, changes in number of consumers, change in price of a substitute good, change in price of a complimentary good, change in consumers taste or preference, change in consumer expectations

Front

True or False: When demand increases the demand curve will shift to the right. When demand decreases the demand curve will shift to the left.

Back

True

Front

If your income increases, the demand for most goods and services will...

Back

Increase

Front

Example of Changes in Substitute goods practice: If the price of Spotify increases, the demand for Apple music will...

Back

Increase

Front

Example of Changes in Substitute goods practice: If the price of Netflix decreases, the demand for hulu music will...

Back

Decrease