Supply & Demand

What is the definition of demand in economics?

• Quantity producers are willing to sell at a given price

• Consumer’s desire and ability to pay for a product

• Total quantity of a product available in the market

• How much producers want to produce

What does “quantity demanded” mean?

• How much consumers want at all prices

• How much producers will supply

• How much consumers will buy at a specific price

• How much all firms produce

The Law of Demand states:

• Price ↑ → Quantity Demanded ↑

• Price ↑ → Quantity Demanded ↓

• Price ↓ → Quantity Demanded ↓

• Price ↓ → Quantity Demanded stays the same

The demand curve typically slopes:

• Upward from left to right

• Downward from left to right

• Vertical

• Horizontal

The demand schedule shows:

• Relationship between price and quantity supplied

• How much producers make at each price

• Relationship between price and quantity demanded

• Taxes and subsidies

A change in demand is shown by:

• A) A movement along the demand curve

• B) The curve shifting left or right

• C) The price staying constant

• D) Government setting prices

An increase in demand is shown by:

• Curve shifts left

• Curve shifts right

• Curve goes up

• Curve goes down

When income increases, demand generally:

• Decreases

• Stays the same

• Increases

• Shifts left

A decrease in income will cause demand to:

• Increase

• Decrease

• Stay constant

• Become vertical

If the number of buyers increases, demand will:

• Increase

• Decrease

• Stay unchanged

• Shift left