Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What does the law of demand state?
What does the law of demand state?
- An increase in price causes an increase in quantity demanded, assuming other factors remain constant
- An increase in price causes a decrease in quantity demanded, assuming other factors remain constant (correct)
- A decrease in price causes a decrease in quantity demanded, assuming other factors remain constant
- A decrease in price causes an increase in quantity demanded, assuming other factors remain constant
What happens to the demand for a normal good when there is an increase in income?
What happens to the demand for a normal good when there is an increase in income?
- The demand for the normal good decreases
- The demand for the normal good remains unchanged
- The demand for the normal good becomes an inferior good
- The demand for the normal good increases (correct)
What are substitutes in the context of demand?
What are substitutes in the context of demand?
- Goods that are unrelated in terms of demand
- Goods for which an increase in the price of one causes a decrease in demand for the other
- Goods for which an increase in the price of one has no impact on the demand for the other
- Goods for which an increase in the price of one causes an increase in demand for the other (correct)
What is the impact on quantity demanded when the price of a good decreases, assuming all other factors remain constant?
What is the impact on quantity demanded when the price of a good decreases, assuming all other factors remain constant?
Signup and view all the answers
What happens to the demand curve when the number of buyers in the market increases?
What happens to the demand curve when the number of buyers in the market increases?
Signup and view all the answers
What effect does a fall in input prices have on production?
What effect does a fall in input prices have on production?
Signup and view all the answers
How does an increase in the number of sellers affect quantity supplied?
How does an increase in the number of sellers affect quantity supplied?
Signup and view all the answers
What is the impact of a cost-saving technology on production?
What is the impact of a cost-saving technology on production?
Signup and view all the answers
What does equilibrium in a market signify?
What does equilibrium in a market signify?
Signup and view all the answers
When does a surplus occur in a market?
When does a surplus occur in a market?
Signup and view all the answers
