The Law of Supply and Demand

Question 1

The price of blue widgets rises to $6.Assuming that all other factors remain the same, how should the factory respond to this increase of price?

Revolt · Accepted Answer

by increasing the number of blue widgets supplied

Question 2

Which events could cause the change in supply shown on this graph? Check all that apply.

Revolt · Accepted Answer

A producer goes out of business.; A natural disaster causes production to drop.

Question 3

What does this demand curve demonstrate?

Revolt · Accepted Answer

Demand increases as prices decrease.

Question 4

Which events could cause the change in demand shown on this graph?Check all that apply.

Revolt · Accepted Answer

A product becomes more popular.; A company offers a better product than its competition.

Question 5

Where is the equilibrium point on this graph?

Revolt · Accepted Answer

where the demand curve and the supply curve cross each other

The Law of Supply and Demand Answers