Demand and Supply of Product X (per week)
price quantiy demanded quanity supplies surplus/shortage pressure on price 1 20 0 2 15 5 3 10 10 4 5 15 5 0 20
True or False?
1) The law of demand implies that an increase in the price of good will decrease the demand for that good.
2) The law of supply implies that an increase in the price of a good will increase the quantity supplied of that good.
3) A change in a non-price determinant of demand will result in the movement along a given demand curve.
4) An increase in supply is reflected graphically as a leftward shift of the supply curve.
5) There is no difference between changes in quantity demanded of beef and change in demand for beef. Justify your answer.
6) Because the price of milk was very high, my mother bought less cereal than usual.
7) Now that my uncle Thomas has an increase in income his household consumes less potatoes and cabbages.
8) Because the price of Pepsi cola fell, price of coca cola remaining the same, we bought many cans of coca cola last month.
Demand and Supply of Product X (per week)
| price | quantiy demanded | quanity supplies | surplus/shortage | pressure on price |
| 1 | 20 | 0 | ||
| 2 | 15 | 5 | ||
| 3 | 10 | 10 | ||
| 4 | 5 | 15 | ||
| 5 | 0 | 20 |
True or False?
1) The law of demand implies that an increase in the price of good will decrease the demand for that good.
2) The law of supply implies that an increase in the price of a good will increase the quantity supplied of that good.
3) A change in a non-price determinant of demand will result in the movement along a given demand curve.
4) An increase in supply is reflected graphically as a leftward shift of the supply curve.
5) There is no difference between changes in quantity demanded of beef and change in demand for beef. Justify your answer.
6) Because the price of milk was very high, my mother bought less cereal than usual.
7) Now that my uncle Thomas has an increase in income his household consumes less potatoes and cabbages.
8) Because the price of Pepsi cola fell, price of coca cola remaining the same, we bought many cans of coca cola last month.
