10 Questions
What is the main factor that affects demand?
Price
What is the 'law of demand'?
The lower the price, the greater the quantity demanded
What is the primary difference between demand and supply?
The direction of the relationship between price and quantity
What happens to the demand when the price of a product decreases?
It increases
What is the term for the sum of all individual consumers' demands?
Demand schedule
What is the term for the total of all the amounts of individual sellers, tabulated to show the quantity offered for sale at different prices?
Supply schedule
According to the second law of supply and demand, what happens when the price is higher?
The quantity supplied increases
What is the term for the price at which demand and supply are equal?
Equilibrium price
What happens when the price is set above the equilibrium price?
Supply exceeds demand and sellers have a large number of unsold products
What is the purpose of government policy around price controls?
To protect farmer incomes and prevent smaller local suppliers from being squeezed out of the marketplace
Test your knowledge of demand in economics, including how it relates to price, and how to create a demand schedule. Learn about the factors that influence demand and practice analyzing demand curves.
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