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Questions and Answers
Excess demand for a product means that the consumers want more than what the producers are willing to supply.
False
Income of the consumer is directly related to the demand for inferior goods.
True
Market supply function is equal to the number of sellers multiplied by the individual demand function.
False
Study Notes
Demand and Supply
- Excess demand occurs when consumers want to buy more of a product than what producers are willing to supply.
- Consumers' income has a direct impact on the demand for inferior goods, implying that as income increases, demand for inferior goods also increases.
Market Supply Function
- The market supply function is not equal to the number of sellers multiplied by the individual demand function, as this statement is incorrect.
- Note: Market supply function represents the total quantity of a product that suppliers are willing to supply at a given price level.
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Description
Test your knowledge on demand and supply concepts in economics with this quiz. Topics include the law of demand, factors affecting demand, types of goods, and more.
