AnswersGlobal EconomicsThe Law of Supply and Demand

The Law of Supply and Demand Answers

10 verified answers
1
Free Preview

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

Question illustration
i
interest in a product and the price a consumer pays.
i
interest in a product and the price a producer pays.
a
amount of a product and the price a consumer pays.
a
amount of a product and the price a producer pays.
2
Free Preview

best

T
The quantity supplied by producers increases as prices rise and decreases as prices fall.
T
The quantity supplied by producers decreases as prices rise and increases as prices fall.
T
The quantity supplied by consumers increases as prices rise and decreases as prices fall.
T
The quantity supplied by consumers decreases as prices rise and increases as prices fall.
3

The graph examines the market for graphic T-shirts.

Question illustration
A
A product becomes less popular and fewer customers purchase it.
A
A product becomes more popular and more customers purchase it.
A
A product sells out of stores and customers can no longer purchase it.
A
A product is restocked on store shelves and is ready for customer purchase.
4

How do lower prices tend to affect demand?

T
They tend to increase the availability of a product.
T
They tend to decrease the availability of a product.
T
They tend to increase the interest in a product.
T
They tend to decrease the interest in a product.
5

most

t
the growing number of furniture buyers in the market
t
the availability of raw materials and natural resources
a
a change in the price of rugs and other complementary goods
a
an increased interest in antique furniture over modern furniture
6

How do changing prices affect supply and demand?

A
As price increases, both supply and demand increase.
A
As price decreases, both supply and demand decrease.
A
As price increases, supply decreases, but demand increases.
A
As price decreases, supply decreases, but demand increases.
7

According to the law of supply, price and quantity move

a
along a track in the same direction.
a
along a track in opposite directions.
f
from different points toward one another.
f
from the same point away from one another.
8

best

T
The two economic laws exist in theory. They have no relation to economics in the real world.
T
The two economic laws exist in theory. They work in practice, but real-world factors can have an effect.
T
The two economic laws work in practice. They apply to real-world economics eighty percent of the time.
T
The two economic laws work in practice. They prove to be true in the real world one hundred percent of the time.
9

most

t
the individual tastes and preferences of buyers.
t
the cost of raw materials and natural resources.
t
the availability of workers in automobile factories.
a
a company's ability to respond to buyers' interest.
10

best

T
The quantity demanded by consumers increases as prices rise, then decreases as prices fall.
T
The quantity demanded by consumers decreases as prices rise, then increases as prices fall.
T
The quantity demanded by producers increases as prices rise, then decreases as prices fall.
T
The quantity demanded by producers decreases as prices rise, then increases as prices fall.

Did you find these answers helpful?

More from this Course

Quiz
10 verified answers

The Law of Supply and Demand

Quiz
10 verified answers

Determining Market Price

Quiz
10 verified answers

2.1 The Law of Supply and Demand