Demand and Supply

What is the law of supply and demand?

• The law of supply and demand states that the price of a good or service is determined by the interaction of its demand and competition.

• The law of supply and demand states that the price of a good or service is determined solely by its supply.

• The law of supply and demand states that the price of a good or service is determined by the interaction of its supply and demand.

• The law of supply and demand states that the price of a good or service is determined by government regulations.

What are some factors that affect supply and demand?

• Currency exchange rates, political stability, inflation rates, trade policies

• Seasonal trends, labor costs, technological obsolescence, consumer confidence

• Weather conditions, advertising, transportation costs, production costs

• Price, consumer preferences, income levels, population size, availability of resources, technological advancements, government regulations, and market competition.

Define market equilibrium.

• The point at which quantity demanded exceeds quantity supplied.

• The point at which quantity supplied exceeds quantity demanded.

• The point at which quantity demanded equals quantity supplied

• The point at which price is determined by the government.

What is the difference between a shift in demand and a movement along the demand curve?

• A shift in demand occurs when there is a change in the price of a substitute good, while a movement along the demand curve occurs when there is a change in the price of the good itself.

• A shift in demand occurs when there is a change in consumer tastes and preferences, while a movement along the demand curve occurs when there is a change in the quantity supplied.

• A shift in demand occurs when there is a change in the quantity demanded, while a movement along the demand curve occurs when there is a change in income.

• A shift in demand refers to a change in the entire demand curve, while a movement along the demand curve occurs due to a change in price.

How does a decrease in production costs affect the supply curve?

• The supply curve will remain unchanged.

• The supply curve will shift to the left.

• The supply curve will become steeper.

• The supply curve will shift to the right.

In terms of Demand, what happens when the price of the products or services increases?

• The demand increases.

• The quantity demanded decreases.

• The quantity demaded increases.

• The demand decreases.

What are the factors which affect the slopping curve of Demand?

• The income effect

• Technology

• The law of diminishing marginal utility

• The substitution effect.

• Tastes/preferences

Regarding "supply", when the price increases, the quantity supplied:

• increases too.

• decreases.

Regarding supply, what is surplus?

• When the quantity supplied is greater than the quantity demanded.

• When the quantity demanded is greater than the quantity supplied.

Regarding supply, what is shortage?

• When the quantity supplied is greater than the quantity demanded.

• When the quantity demanded is greater than the quantity supplied.