Demand and Supply Curves

The Law of Demand

• Price Increasing, Demand increasing

• Price Increasing, Demand Decreasing

• Price Decreasing, Demand Decreasing

• Price Incresing, Supply

The Law of Supply

• Price increasing, Supply Increasing

• Price Increasing, Supply Decreasing

• Price Decreasing, Supply Increasing

• Price decreasing, Supply equal

A market demand curve tells us how much :

• A firm will sell at various prices

• Firms will sell at various prices

• An individual will buy at various price

• ndividuals will buy at various prices

A demand curve moves downward when there is a negative shift

• True

• False

An individual demand curve tells us how much:

• A firm sells at various prices

• an individual will buy at various price

• firms will sell at various price

• individuals will buy at various price

An individual supply curves tells us how much:

• A firm will sell at various prices

• firms sell at various prices

• An individual will buy at various price

• Individual will buy at varius prices

Suppose there is a large increase in the price of a bottle of iced tea. How is the likely to affect the demand curve for bottles of cola?

• There will be an extension of demand along the demand curve for cola

• The demand curve for cola will remain unchanged

• The demand curve for cola will shift to the left

• The demand curve for cola will shift to the right

The_______ sends out a signal from consumers to producers.

• effective demand

• market

• notional demand

• price mechanism

The_______ sends out a signal from consumers to producers.

• effective demand

• notional demand

• market

• price mechanism

Where buyers may want to buy a product but which is not always backed up by the ability to pay is called?

• Effective demand

• Notional demand

• Ceteris Paribus

• Supply chain