AnswersISP ONLY Economics S5000XXThe Law of Supply and Demand

The Law of Supply and Demand Answers

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

A
count.
B
demand.
C
number.
D
supply.
2
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A factor that most directly affects the demand for automobiles is

A
the individual tastes and preferences of buyers.
B
the cost of raw materials and natural resources.
C
the availability of workers in automobile factories.
D
a company's ability to respond to buyers' interest.
3

A market supply schedule shows

A
the products of two companies only.
B
the prices and quantity in an entire market.
C
how prices affect a single producer.
D
how prices affect a group of consumers.
4

According to the law of supply, price and quantity move

A
along a track in the same direction.
B
along a track in opposite directions.
C
from different points toward one another.
D
from the same point away from one another.
5

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

Question illustration
A
interest in a product and the price a consumer pays.
B
interest in a product and the price a producer pays.
C
amount of a product and the price a consumer pays.
D
amount of a product and the price a producer pays.
6

The vertical axis of a demand curve shows

A
the price of a product.
B
the supply of a product.
C
the interest in a product.
D
the production cost of a product.
7

According to the law of demand, price and quantity move

A
along a track in the same direction.
B
along a track in opposite directions.
C
from different points toward one another.
D
from the same point away from one another.
8

The graph examines the market for graphic T-shirts.

Question illustration
A
A product becomes less popular and fewer customers purchase it.
B
A product becomes more popular and more customers purchase it.
C
A product sells out of stores and customers can no longer purchase it.
D
A product is restocked on store shelves and is ready for customer purchase.
9

How do lower prices tend to affect demand?

A
They tend to increase the availability of a product.
B
They tend to decrease the availability of a product.
C
They tend to increase the interest in a product.
D
They tend to decrease the interest in a product.
10

Which statement best explains the law of demand?

A
The quantity demanded by consumers increases as prices rise, then decreases as prices fall.
B
The quantity demanded by consumers decreases as prices rise, then increases as prices fall.
C
The quantity demanded by producers increases as prices rise, then decreases as prices fall.
D
The quantity demanded by producers decreases as prices rise, then increases as prices fall.

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