Demand and supply relationship

Which is demand function

• Qd = a - b.P

• Qs = c + d.P

Which is supply function

• Qd = a - b.P

• Qs = c + d.P

Qd = 25-3P

Qs = 2P

Calculate equilibrium price. (Write a number)

The price and quantity at which quantity demanded and quantity supplied are equal called equilibrium.

• True

• False

A rise in price of other goods that could be supplied by the producer leads to a leftward shift in the supply curve.

• true

• false

A fall in production costs leads to a rightward shift in the supply curve.

• True

• False

The effects of taxes lead to a leftward shift in the supply curve.

• TRUE

• FALSE

Surplus happens when a quantity supplied that is larger than the quantity demanded.

• True

• False

Shortage happens when a quantity supplied that is larger than the quantity demanded.

• True

• False

The price and quantity at which quantity demanded and quantity supplied are equal called equilibrium.

• True

• False