Review: Supply & Demand

The higher the price, the lower the quantity that consumers are willing and able to buy or purchase, on the other hand, lower the price, the higher the quantity that consumers are willing to buy or purchase.

• Law of Supply

• Shift in Supply

• Law of Demand

• Shift in Demand

Determinants Affecting Demand​ ​ (a)   ​ ​ (b)   ​ (c)   ​ ​ (d)   ​ ​ (e)  

• Average Income
• Size of the Market
• Prices of related goods
• Taste and Preferences
• Special influences

Determinants Affecting Supply​ ​ (a)   ​ ​ (b)   ​ (c)   ​ ​ (d)   ​ ​ (e)  

• Prices of inputs/factors of production
• Technology
• Prices of related goods
• Government policy
• Special influences

shows an inverse relationship between demand and price.

(a)  

If the demand curve shifts right, it decreases

• TRUE

• FALSE

The demand curve is downward sloping.

• TRUE

• FALSE

The supply curve is downward sloping.

• TRUE

• FALSE

If the supply curve shifts right, supply increases.

• TRUE

• FALSE

shows direct relationship between prices and quantity supplied.

(a)  

The higher the price, the higher the quantity that sellers or producers are willing and able to supply, on the other hand, the lower the price, the lower the quantity that sellers or producers are willing to and able to supply.

• Law of Demand

• Law of Supply

• Shift in Supply

• Shift in Demand