Economics: Theory of Demand and Supply

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WellAgate3657
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10 Questions

What is the law of demand?

The quantity demanded of a good decreases when the price of the good increases

What is a demand schedule?

A table that shows the relationship between the price of a good and the quantity demanded

What happens to the demand curve when the number of buyers increases?

The demand curve shifts to the right

How does an increase in income affect the demand for normal goods?

Demand increases

What is the relationship between the price of a good and the quantity demanded, according to the law of demand?

Inverse

What determines the quantity of a good that buyers are willing and able to buy?

The price of the good and the number of buyers

Which of the following is a determinant of demand?

The number of buyers

What happens to the demand curve when consumers' income increases for normal goods?

The demand curve shifts to the right

What type of relationship exists between the price of a good and the quantity demanded?

Inverse relationship

What is the purpose of a demand curve?

To show how price affects quantity demanded

Test your understanding of the fundamental concepts of demand and supply, including the law of demand, demand schedule, and demand curve shifters. How well do you know the relationship between price and quantity demanded?

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