Demand and Supply

What is the relationship between supply and demand elasticity?

• They are unrelated.
• They are indirectly related.
• They are directly proportional.
• They are inversely proportional.

What is the relationship between demand and price?

• They are unrelated.
• They are indirectly related.
• They are directly proportional.
• They are inversely proportional.

What is demand?

• The desire for a certain economic product.
• The ability to purchase a product.
• The willingness to pay for a product.
• All of the above.

What is a Personal Scale of Preferences for goods and services?

• A ranking of goods and services based on their necessity.
• A ranking of goods and services based on their quality.
• A ranking of goods and services based on their popularity.
• A ranking of goods and services based on their price.

What is Elastic Demand?

• When the demand is not affected by changes in quantity.

• When the demand is slightly affected by changes in price.

• When the demand is not affected by changes in price.

• When the demand is greatly affected by changes in price.

What is the role of Money in exchange between goods?

• Money is not necessary for exchange between goods.
• Money has no value in exchange between goods.
• Money serves as a means of exchange between goods.
• Money is the only means of exchange between goods.

What is Inelastic Demand?

• When the demand is not affected by changes in price.

• When the demand is greatly affected by changes in price.

• When the demand is slightly affected by changes in price.

• When the demand is not affected by changes in quantity.

What is the Law of Demand?

• The demand varies directly with its price.

• The demand varies inversely with its price.

• The demand is not affected by its price.

• The demand is unrelated to its price.

What is the difference between Demand for essential and non-essential goods?

• There is no difference.
• Demand for essential goods is more elastic.
• Demand for essential goods is more inelastic.
• Demand for non-essential goods is more elastic.

How does a Decrease in Price affect Demand?

• It decreases demand.
• It depends on the type of product.
• It has no effect on demand.
• It increases demand.