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Questions and Answers
What happens when the price of a good rises, according to the law of supply?
What happens when the price of a good rises, according to the law of supply?
- Tastes of consumers change
- Quantity supplied of the good falls (correct)
- Demand for the good increases
- Number of buyers decreases
How does an increase in the number of buyers affect the demand curve?
How does an increase in the number of buyers affect the demand curve?
- Causes a movement along the demand curve
- Shifts the demand curve to the right (correct)
- Leads to excess supply
- Shifts the supply curve to the left
Which variable causes a movement along the demand curve according to the text?
Which variable causes a movement along the demand curve according to the text?
- Income
- Number of buyers
- Expectations
- Price of related goods (correct)
What is the quantity supplied of a good?
What is the quantity supplied of a good?
In the context of supply, what does a supply schedule show?
In the context of supply, what does a supply schedule show?
If buyers expect prices to fall in the future, how would this affect the demand curve?
If buyers expect prices to fall in the future, how would this affect the demand curve?
How does an increase in income impact the demand curve?
How does an increase in income impact the demand curve?
How does a change in the number of buyers affect the demand curve?
How does a change in the number of buyers affect the demand curve?
What variable causes a movement along the demand curve?
What variable causes a movement along the demand curve?
Explain the Law of Supply in relation to the price of a good.
Explain the Law of Supply in relation to the price of a good.
What does the supply schedule show?
What does the supply schedule show?
How do changes in income impact the demand curve?
How do changes in income impact the demand curve?
Explain how the price of related goods affects the demand curve.
Explain how the price of related goods affects the demand curve.
How does a change in tastes influence the demand curve?
How does a change in tastes influence the demand curve?
What effect do expectations have on the demand curve?
What effect do expectations have on the demand curve?
Describe the relationship between the price of a good and the quantity supplied.
Describe the relationship between the price of a good and the quantity supplied.
How does the number of buyers affect the equilibrium price and quantity in a market?
How does the number of buyers affect the equilibrium price and quantity in a market?
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