supply and demand

Why did prices decrease when the demand for pearls was low?

• To attract more buyers

• Due to overproduction

• Because of high import taxes

• Vendors left the market

What happened when the supply of pearls was low according to the Pearl Exchange Review?

• Prices decreased

• Prices remained the same

• Prices increased

• Quality of pearls decreased

Why did prices increase when the supply of pearls was low?

• Increased competition among buyers

• Decreased interest in pearls

• Vendors increased production costs

• Government regulations

What does the term "demand" refer to in economics?

• The amount of a product that a supplier is willing to supply at a given price

• The desire to own something and the ability to pay for it

• The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price and time

• The total amount of goods produced by a country

How does the demand curve typically behave in economic graphs?

• It slopes upward as the price increases

• It remains horizontal as price changes

• It slopes downward as the price decreases

• It fluctuates frequently with market conditions

What does the Law of Downward Sloping Demand state about the relationship between price and quantity demanded?

• As price increases, quantity demanded remains unchanged.

• As price increases, quantity demanded increases.

• As price increases, quantity demanded decreases.

• As price decreases, quantity demanded remains unchanged.

According to the Law of Diminishing Marginal Utility, what happens to the satisfaction from consuming additional units of a good?

• Each additional unit provides more satisfaction than the previous.

• Satisfaction increases exponentially with each additional unit.

• Each additional unit provides less satisfaction than the previous.

• Satisfaction does not change with additional units.

What causes a shift in the demand curve according to the image?

• Changes in government policies

• Changes in tastes and fashion

• Introduction of new technologies

• Changes in the prices of related goods

According to the image, how does an increase in income affect the demand for normal goods?

• Demand decreases

• Demand does not change

• Demand increases

• Demand fluctuates unpredictably

How does an increase in income affect the demand for inferior goods as per the image?

• Demand increases

• Demand decreases

• Demand remains stable

• Demand becomes unpredictable