Supply and Demand

What does the law of supply and demand describe?

• How the price of a resource affects its supply and demand

• The relationship between consumer preferences and supplier preferences

• The impact of government regulations on market prices

• The role of taxes in shifting supply and demand curves

What happens to the demand for a product when its price increases, according to the law of demand?

• Demand decreases

• Demand increases

• Demand remains constant

• Demand becomes unpredictable

What is the equilibrium price?

• The price at which supply equals demand

• The price at which demand exceeds supply

• The price at which supply exceeds demand

• The price set by government regulations

Which of the following factors can shift the supply or demand curves?

• Consumer income

• The color of the product

• The brand logo

• The time of day

According to the law of supply, what happens when the price of a product increases?

• Supply increases

• Supply decreases

• Supply remains constant

• Supply becomes unpredictable