Supply and Demand Quiz

Price Determination and Resource Allocation

They will choose not to buy it or buy it somewhere else

By allocating more resources to the production of goods in growing markets and less resources in declining markets

<p>Labor productivity, changes in the cost of production, improvements in technology, taxes, subsidies, weather conditions and health of livestock and crops, prices and products, discoveries and depletions of commodities</p> Signup and view all the answers

<p>The equilibrium price will fall and the quantity supplied will increase</p> Signup and view all the answers

<p>The equilibrium price will rise and the quantity supplied will decrease</p> Signup and view all the answers

<p>Cost of production, new technology, indirect tax, subsidies, price of related goods, natural factors</p> Signup and view all the answers

<p>The law of demand states that there is a negative causal relationship between price and quantity demanded. When the price of a product increases, the demand for it decreases, and vice versa.</p> Signup and view all the answers

<p>A movement along the demand curve refers to a change in quantity demanded due to a change in price, while a shift of the demand curve describes a change in overall demand caused by factors other than price.</p> Signup and view all the answers

<p>Some non-price determinants of demand include income, price of related goods (substitutes and complements), demographic changes (e.g., population size, changes in population structure), fashion and tastes, and advertising.</p> Signup and view all the answers

<p>The law of supply states that there is a positive causal relationship between price and quantity supplied. As the price of a product increases, the supply of it increases as well, and vice versa.</p> Signup and view all the answers