Demand and Supply Curves

Front

What is the demand curve?

Back

The demand curve is a graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various prices.

Front

What happens to the demand curve when the price of a good decreases?

Back

When the price of a good decreases, the demand curve typically shifts to the right, indicating an increase in quantity demanded.

Front

What is the supply curve?

Back

The supply curve is a graphical representation showing the relationship between the price of a good and the quantity supplied by producers at various prices.

Front

What happens to the supply curve when there is a natural disaster affecting production?

Back

A natural disaster can shift the supply curve to the left, indicating a decrease in quantity supplied due to production disruptions.

Front

What does it mean for demand to be elastic?

Back

Demand is elastic when a small change in price leads to a significant change in the quantity demanded.

Front

What does it mean for demand to be inelastic?

Back

Demand is inelastic when a change in price has little effect on the quantity demanded.

Front

What is a key factor that makes demand inelastic for certain goods?

Back

A key factor that makes demand inelastic is when the good is a necessity with few substitutes, such as toothpaste.

Front

What is the law of supply?

Back

The law of supply states that, all else being equal, an increase in price results in an increase in quantity supplied.

Front

What is the difference between 'quantity supplied' and 'supply'?

Back

'Quantity supplied' refers to the amount of a good that producers are willing to sell at a specific price, while 'supply' refers to the overall relationship between price and quantity supplied.

Front

What happens to the quantity supplied when the price of a good increases?

Back

When the price of a good increases, the quantity supplied typically increases as producers are willing to supply more at higher prices.