The Law of Supply and Demand

Question 1

A factor that most directly affects the demand for automobiles is

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the individual tastes and preferences of buyers.

Question 2

According to the law of demand, price and quantity move

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along a track in opposite directions.

Question 3

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

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supply.

Question 4

The amount of goods and services consumers want is called the

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demand.

Question 5

Which statement best explains the law of demand?

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

Question 6

How do changing prices affect supply and demand?

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As price decreases, supply decreases, but demand increases.

Question 7

Which statement best compares the laws of supply and demand?

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

Question 8

The vertical axis of a demand curve shows

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the price of a product.

Question 9

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

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equilibrium.

Question 10

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

Revolt · Accepted Answer

amount of a product and the price a consumer pays.

The Law of Supply and Demand Answers