The Law of Supply and Demand

Question 1

A factor that most directly affects the demand for automobiles is

Revolt · Accepted Answer

the individual tastes and preferences of buyers.

Question 2

The total amount of a product available in a market at a given price is called the

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supply.

Question 3

How do changing prices affect supply and demand?

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As price decreases, supply decreases, but demand increases.

Question 4

Look at the graph examining the market for graphic T-shirts.

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30 graphic T-shirts on sale for $10

Question 5

The amount of goods and services consumers want is called the

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demand.

Question 6

The chart compares the price of graphic T-shirts to the quantity demanded.

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amount of a product and the price a consumer pays.

Question 7

How do lower prices tend to affect demand?

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They tend to increase the interest in a product.

Question 8

According to the law of supply, price and quantity move

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along a track in the same direction.

Question 9

The point where supply and demand meet and prices are set is called

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equilibrium.

Question 10

The vertical axis of a demand curve shows

Revolt · Accepted Answer

the price of a product.

The Law of Supply and Demand Answers