B1C03&04: Demand and Supply DSE

What is the meaning of demand?

• The quantity that a buyer is willing and able to buy at a particular price over a period of time.

• The quantities that a buyer is willing and able to buy at different prices over a period of time, other factors being constant.

What is the meaning of quantity demanded?

• The quantities that a buyer is willing and able to buy at different prices over a period of time, other factors being constant.

• The quantity that a buyer is willing and able to buy at a particular price over a period of time.

Demand shows the relationship between the prices of a good and the quantities demanded.

• True

• False

Demand is wants supported by purchasing power. True or False?

• True

• False

To find the market demand, we add up the quantities demanded of all individual buyers in the market at different prices. This process is called ________.

• horizontal summation

• vertical summation

• market aggregation

• demand compilation

The law of demand states that the lower (higher) the price of a good, the greater (smaller) its quantity demanded, other factors being constant. This statement explains the relationship between price and quantity demanded in which economic principle?

• Law of Supply

• Law of Demand

• Equilibrium Price

• Price Elasticity

According to the law of demand, the quantity demanded and the price of a good are ________ related.

• negatively

• positively

• independently

• randomly

What is the relationship between the price and quantity demanded according to the demand schedule?

• As price increases, quantity demanded increases

• As price increases, quantity demanded decreases

• Price and quantity demanded are unrelated

• As price decreases, quantity demanded decreases

• The quantity demanded increases

• The quantity demanded decreases

• The quantity demanded remains the same

• The quantity demanded fluctuates

Define 'Supply' as per the given table: The quantities that a seller is willing and able to sell at different prices over a period of time, other factors being constant.

• The quantities that a seller is willing and able to sell at different prices over a period of time, other factors being constant.

• The quantities that a buyer is willing to purchase at different prices over a period of time, other factors being constant.

• The amount of goods available in the market at a fixed price, regardless of demand.

• The change in quantity supplied due to a change in consumer preferences.