Demand and Supply Concepts

Demand

False

<p>ceteris paribus</p> Signup and view all the answers

<p>The three ways to demonstrate the relationship between quantity demanded and price are the demand function, the demand schedule, and the demand curve.</p> Signup and view all the answers

<p>A demand curve visually represents the relationship between product price and quantity demanded, indicating a downward slope as price decreases and vice versa.</p> Signup and view all the answers

<p>Supply represents the producer's willingness and ability to produce and sell a particular good or service at a given price.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>The three ways to represent the relationship between quantity supplied and price are the supply function, the supply schedule, and the supply curve.</p> Signup and view all the answers

<p>A supply curve visually represents the relationship between the price of a product and the quantity producers are willing to supply, illustrating how supply changes.</p> Signup and view all the answers

<p>Market equilibrium occurs when the quantity demanded for a good or service matches the quantity supplied by producers at a specific price.</p> Signup and view all the answers

<p>Equilibrium price and quantity both increase.</p> Signup and view all the answers

<p>A shift in the demand or supply graph signifies a change in the position of the entire curve, caused by factors other than price changes, such as consumer preferences, income, population, technology, input prices, and government policies.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>Quantity demanded decreases.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>As consumer income increases, the demand for normal goods tends to increase because consumers have more purchasing power. Conversely, a decrease in income leads to a decrease in demand for normal goods.</p> Signup and view all the answers

<p>Decreased production.</p> Signup and view all the answers

<p>An increase in the price of a substitute good can lead to a decrease in the supply of the original good. This happens because producers may switch their focus to producing the more profitable substitute good, resulting in a decrease in the supply of the original good.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>Producers may adjust their supply based on their expectations about future price changes. If they anticipate an increase in price, they may hold off on production now and increase supply in the future. If they anticipate a decrease in price, they may ramp up production and supply in the present before the price decreases.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>A floor price is a government-imposed minimum price on a product or service to protect producers from low prices and ensure a certain level of income for workers involved in producing the good or service.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>A shortage occurs when the quantity demanded for a good or service exceeds the quantity supplied at a given price. This situation arises when the price is set below the equilibrium price, leading to a higher demand than supply.</p> Signup and view all the answers

<p>A surplus occurs when the quantity supplied for a good or service exceeds the quantity demanded at a given price. This happens when the price is set above the equilibrium price, leading to a larger supply than demand.</p> Signup and view all the answers

<p>Consumer preferences, income levels, and prices of related goods can all significantly influence the demand for Nike products. For example, if consumers develop a strong preference for athletic shoes, or if their income increases allowing them to purchase more expensive shoes, then demand for Nike products is likely to increase. Similarly, if the price of substitute brands such as Adidas or Reebok decreases, consumers might choose those alternatives over Nike products, decreasing demand for Nike. On the other hand, if the price of complementary goods like athletic clothing or accessories decreases, it could lead to an increase in demand for Nike products, as consumers are more inclined to purchase complete athletic outfits.</p> Signup and view all the answers