Law of Supply and Demand

The law of supply and demand asserts that

• demand curves and supply curves tend to shift to the right as time goes by.

• when the supply curve for a good shifts, the demand curve for that good shifts in response.

• the price of a good will eventually rise in response to an excess demand for that good.

• the equilibrium price of a good will be rising more often than it will be falling.

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up

• it goes down

• it stays the same

• it is not effected

What does this curve represent?

• demand

• supply

• equilibrium

• shortage

What does this curve represent?

• supply

• equilibrium

• demand

• surplus

If the Price of a at Whataburger cost $17.10 and the Quantity Demanded is LOW what will happen to the Quantity Demanded at the price $12.54?

• It will not change

• It will decrease

• It will increase

• It will stay the same

What does this curve represent?

• supply

• equilibrium

• demand

• surplus

Label each part of the Demand Graph

a

b

c

Demand

Price

Quantity

If the Quantity Demanded for lipstick is HIGH at $4.66 but then the Prices go up to $8.99, what will happen to the Quantity Demanded for lipstick? (a)  

• It will increase

• It will stay the same

• It will not change

• It will decrease

If the Price of a Panthère de Cartier purse is at $100 and the Quantity Demanded is HIGH (cause steal) but then changes to $3,000 what happens to the Quantity Demanded?

• It will not change

• It will increase

• It will decrease

• It will stay the same

If the Price for movie tickets are $20.76 the Quantity Demanded is LOW if the price decreases to $12.43 what will happen to the Quantity Demanded?

• It will decrease

• It will increase

• Stay the same

• No change at all