Review

Define 'Supply' and provide an example.

• Supply refers to the total amount of a good or service that is available to consumers at a given price. For example, if a bakery produces 100 loaves of bread each day, the supply of bread is 100 loaves.

• Supply refers to the demand for a product by consumers at a given price. For example, if a bakery sells 100 loaves of bread each day, the demand for bread is 100 loaves.

• Supply refers to the total amount of money consumers are willing to spend on a good or service. For example, if consumers spend $100 on bread each day, the supply of bread is $100.

• Supply refers to the total number of consumers interested in a product. For example, if 100 people want to buy bread each day, the supply of bread is 100 people.

Define 'Demand' and provide an example.

• Demand refers to the quantity of a product or service that consumers are willing and able to purchase at a given price over a specific period of time. For example, if the price of apples decreases, the demand for apples may increase as more consumers are willing to buy them.

• Demand refers to the supply of a product that producers are willing to sell at a given price.

• Demand is the amount of money consumers are willing to spend on luxury goods.

• Demand is the desire of consumers to own goods without the ability to purchase them.

Define 'Inelastic' and provide an example.

• Inelastic refers to a situation in economics where the quantity demanded or supplied of a good or service does not change significantly when there is a change in price. An example of inelastic demand is insulin for diabetics; even if the price increases, the quantity demanded remains relatively constant because it is a necessary medication.

• Inelastic refers to a situation where the quantity demanded or supplied changes significantly with a change in price. An example is luxury cars, where demand drops sharply with price increases.

• Inelastic refers to a situation where the quantity demanded or supplied remains constant regardless of price changes. An example is seasonal fruits, which are only available at certain times of the year.

• Inelastic refers to a situation where the quantity demanded or supplied increases significantly with a decrease in price. An example is electronic gadgets, where demand surges with price drops.

Define 'Elastic' and provide an example.

• Elastic refers to the ability of a material or object to return to its original shape after being stretched or compressed. An example of elasticity is a rubber band, which can be stretched and will return to its original shape when released.

• Elastic refers to the ability of a material to conduct electricity. An example of elasticity is a copper wire, which allows electric current to pass through.

• Elastic refers to the ability of a material to absorb water. An example of elasticity is a sponge, which can soak up water and expand.

• Elastic refers to the ability of a material to resist heat. An example of elasticity is a ceramic tile, which can withstand high temperatures without melting.

Define 'Law of Supply' and provide an example.

• The 'Law of Supply' states that, all else being equal, an increase in the price of a good will lead to an increase in the quantity supplied. For example, if the price of oranges rises, orange farmers are likely to produce more oranges to take advantage of the higher prices.

• The 'Law of Supply' states that, all else being equal, an increase in the price of a good will lead to a decrease in the quantity supplied. For example, if the price of oranges rises, orange farmers are likely to produce fewer oranges.

• The 'Law of Supply' states that, all else being equal, a decrease in the price of a good will lead to an increase in the quantity supplied. For example, if the price of oranges falls, orange farmers are likely to produce more oranges.

• The 'Law of Supply' states that, all else being equal, a decrease in the price of a good will lead to a decrease in the quantity supplied. For example, if the price of oranges falls, orange farmers are likely to produce fewer oranges.

Define 'Law of Demand' and provide an example.

• The Law of Demand states that, all else being equal, as the price of a good or service decreases, the quantity demanded increases, and vice versa. For example, if the price of apples decreases from $1 to $0.50, consumers are likely to buy more apples.

• The Law of Demand states that as the price of a good increases, the quantity demanded also increases, assuming all other factors remain constant.

• The Law of Demand suggests that the quantity demanded of a good is unaffected by changes in its price.

• The Law of Demand indicates that as the price of a good decreases, the quantity demanded decreases, assuming all other factors remain constant.

Define 'Demand Curve' and provide an example.

• A demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded by consumers at those prices. It typically slopes downward from left to right, indicating that as the price decreases, the quantity demanded increases. For example, if the price of apples decreases from $1 to $0.50, the quantity demanded may increase from 100 to 200 apples.

• A demand curve is a graphical representation of the relationship between the supply of a good or service and the quantity supplied by producers at those prices.

• A demand curve is a chart that shows the relationship between the price of a good and the quantity of the good that consumers are willing to buy at different prices, typically sloping upward.

• A demand curve is a table that lists the quantity of a good that consumers will buy at different prices, without any graphical representation.

An increase in supply affects prices by:

• Increasing prices

• Decreasing prices

• Having no effect on prices

• Causing prices to fluctuate unpredictably

What happens to demand when the price of a good decreases?

• Demand increases

• Demand decreases

• Demand remains the same

• Demand becomes zero

Why might a life-saving medication be considered inelastic?

• Because its demand does not change significantly with price changes

• Because it is a luxury item

• Because it has many substitutes

• Because it is not essential