The Law of Supply and Demand — Quiz

Question 1

How do lower prices tend to affect demand?

Revolt · Accepted Answer

They tend to increase the interest in a product.

Question 2

A factor that most directly affects the demand for automobiles is

Revolt · Accepted Answer

the individual tastes and preferences of buyers.

Question 3

Which statement best explains the law of supply?

Revolt · Accepted Answer

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

Question 4

According to the law of demand, price and quantity move

Revolt · Accepted Answer

along a track in opposite directions.

Question 5

Which statement best compares the laws of supply and demand?

Revolt · Accepted Answer

The two economic laws exist in theory. They work in practice, but real-world factors can have an effect.

Question 6

The vertical axis of a demand curve shows

Revolt · Accepted Answer

the price of a product.

Question 7

Which factor most directly affects a furniture company's supply?

Revolt · Accepted Answer

the availability of raw materials and natural resources

Question 8

Which statement best explains the law of demand?

Revolt · Accepted Answer

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

Question 9

The amount of goods and services consumers want is called the

Revolt · Accepted Answer

demand.

Question 10

How might a drop in price for washing machines affect the demand for dryers?

Revolt · Accepted Answer

The demand for dryers would most likely increase as the price for washing machines dropped.

The Law of Supply and Demand — Quiz Answers