The Law of Supply and Demand

Question 1

Look at the graph examining the market for graphic T-shirts.

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30 graphic T-shirts on sale for $10

Question 2

On a supply and demand graph, equilibrium is the point where

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the two curves meet.

Question 3

Which statement best explains the law of supply?

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The quantity supplied by producers increases as prices rise and decreases as prices fall.

Question 4

The vertical axis of a demand curve shows

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the price of a product.

Question 5

According to the law of demand, price and quantity move

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along a track in opposite directions.

Question 6

The amount of goods and services consumers want is called the

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demand.

Question 7

The graph examines the market for graphic T-shirts.

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A product becomes less popular and fewer customers purchase it.

Question 8

A market supply schedule shows

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the prices and quantity in an entire market.

Question 9

Which statement best compares the laws of supply and demand?

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The two economic laws exist in theory. They work in practice, but real-world factors can have an effect.

Question 10

A factor that most directly affects the demand for automobiles is

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the individual tastes and preferences of buyers.

The Law of Supply and Demand Answers