The Law of Supply and Demand

Question 1

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 2

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 3

A market supply schedule shows

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the prices and quantity in an entire market.

Question 4

According to the law of supply, price and quantity move

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along a track in the same direction.

Question 5

The graph examines the market for graphic T-shirts.

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A product becomes less popular and fewer customers purchase it.

Question 6

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 7

The amount of goods and services consumers want is called the

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demand.

Question 8

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

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30 graphic T-shirts on sale for $10

Question 9

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

Revolt · Accepted Answer

supply.

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