Economics: Demand and Supply
Analysis Introduction with correct
answers 100% 2026
Two types of markets - Correct Answers Services and Finished goods
Intermediate Goods - Correct Answers Goods used in the production of final goods. (Intel
produces CPUs for the finished computer)
Capital Markets - Correct Answers Markets where firms raise money for investment by selling
debt (bonds) or selling equities, as well as the markets where these debt and equity claims are
traded
Demand function for Good X over some period - Correct Answers QDx = (f(Px, I, Py,....)
Where:
Px = price of Good X
I = some measure individual or average income per year
Py = prices of related goods
Law of Demand - Correct Answers Quantity demanded typically increases at lower prices
QD, gas = 10.75 - 1.25P, gas + .02i + .12P ,bt - .01P, auto
Where:
Income is measured in thousands
Price of bus travel is in average dollars per 100 miles traveled.
,Average car price = $25,000
Income = $45,000
Price of Bus Travel = $30
Price of Gas = $4 per gallon
What is the QD, gas per week and P, gas (demand curve)? - Correct Answers QD, gas = 10.75 -
1.25(4) + .02(45) + .12(30) + -.01(25) = 10 gallons per week
Where QD, gas = 15 - 1.25P, gas
(Demand curve for changing gas prices)
Figure 1: Demand for Gasoline - Correct Answers
For the producer of a good, the quantity he will willingly supply depends on ________, ______,
______. - Correct Answers Selling price, cost of production, cost of labor
Law of Supply - Correct Answers A greater quantity is supplied at higher prices
Qs,tables = -274 + .80P, tables - 8.00Wage - .20P, wood
Where:
Wage is in dollars per hour
Price of wood is in dollars per 100 feet
Wage = $12 per hour
Wood = $150
, What is the QS, tables and P, tables (producer supply curve)? - Correct Answers QS,tables = -400
+ .80P,tables
P,tables = 500 + 1.25QS,tables
(supply curve)
Figure 2: Supply of Tables - Correct Answers
Movement along the curve - Correct Answers A change in the market price that
increases/decreases the QS or QD
Shift of the curve - Correct Answers A change in one of the independent variables other than
price
Figure 3: Change in Quantity Demanded - Correct Answers
Figure 4: Change in Quantity Supplied - Correct Answers
An increase in income or the price of a substitute will ______ demand - Correct Answers
Increase
An increase in the price of a complement will _____ demand - Correct Answers Decrease
A decrease in the price of a substitute will _____ demand - Correct Answers Decrease
Figure 5: Shift in Demand - Correct Answers
Analysis Introduction with correct
answers 100% 2026
Two types of markets - Correct Answers Services and Finished goods
Intermediate Goods - Correct Answers Goods used in the production of final goods. (Intel
produces CPUs for the finished computer)
Capital Markets - Correct Answers Markets where firms raise money for investment by selling
debt (bonds) or selling equities, as well as the markets where these debt and equity claims are
traded
Demand function for Good X over some period - Correct Answers QDx = (f(Px, I, Py,....)
Where:
Px = price of Good X
I = some measure individual or average income per year
Py = prices of related goods
Law of Demand - Correct Answers Quantity demanded typically increases at lower prices
QD, gas = 10.75 - 1.25P, gas + .02i + .12P ,bt - .01P, auto
Where:
Income is measured in thousands
Price of bus travel is in average dollars per 100 miles traveled.
,Average car price = $25,000
Income = $45,000
Price of Bus Travel = $30
Price of Gas = $4 per gallon
What is the QD, gas per week and P, gas (demand curve)? - Correct Answers QD, gas = 10.75 -
1.25(4) + .02(45) + .12(30) + -.01(25) = 10 gallons per week
Where QD, gas = 15 - 1.25P, gas
(Demand curve for changing gas prices)
Figure 1: Demand for Gasoline - Correct Answers
For the producer of a good, the quantity he will willingly supply depends on ________, ______,
______. - Correct Answers Selling price, cost of production, cost of labor
Law of Supply - Correct Answers A greater quantity is supplied at higher prices
Qs,tables = -274 + .80P, tables - 8.00Wage - .20P, wood
Where:
Wage is in dollars per hour
Price of wood is in dollars per 100 feet
Wage = $12 per hour
Wood = $150
, What is the QS, tables and P, tables (producer supply curve)? - Correct Answers QS,tables = -400
+ .80P,tables
P,tables = 500 + 1.25QS,tables
(supply curve)
Figure 2: Supply of Tables - Correct Answers
Movement along the curve - Correct Answers A change in the market price that
increases/decreases the QS or QD
Shift of the curve - Correct Answers A change in one of the independent variables other than
price
Figure 3: Change in Quantity Demanded - Correct Answers
Figure 4: Change in Quantity Supplied - Correct Answers
An increase in income or the price of a substitute will ______ demand - Correct Answers
Increase
An increase in the price of a complement will _____ demand - Correct Answers Decrease
A decrease in the price of a substitute will _____ demand - Correct Answers Decrease
Figure 5: Shift in Demand - Correct Answers
