Reading 13. Demand and Supply
Analysis: Introduction with correct
answers 100% 2026
The factors market is the market where ______
A. consumers buy products from businesses.
B. businesses buy factors of production from households.
C. households sell inputs to consumers - Correct Answers Correct Answer: B
Households own resources and make them available for sale to businesses in the resource
market.
Factors are also referred to as inputs or as resources of production. Products are purchased in
the product
or output market. Bonds are neither an output nor an input. They are bought and sold in
financial markets,
also sometimes referred to as capital markets.
Which of the following markets is the LEAST ACCURATELY described as a factor market?
A. The market for plumbers and electricians
B. The market for building materials
C. The market for residential houses - Correct Answers Correct Answer: C
What happens to the demand curve when consumers began purchasing more of a product due
to a decrease in price? - Correct Answers A change in price causes a movement along the
demand curve. When the price falls, the movement is downward and to the right.
Describe what would happen to a supply curve in each of the following situations:
1. An increase in the number of suppliers in the market
2. A decrease in taxes levied on the good produced in the market
,3. An increase in the price of the good produced in the market - Correct Answers 1. An increase
in the number of firms would result in the supply curve to shift right
2. A decrease in taxes would cause the supply to shift right
3. A change in the price would result in a
movement along the supply curve, not a shift
As the price of pizza increases, the ______ declines.
A. quantity of pizza demanded
B. demand for pizza - Correct Answers Correct Answer: A
The price of electricity is cheaper in the northwestern part of the United States and therefore
the ______ is
greater in the northwest.
A. demand for electricity
B. quantity of electricity demanded - Correct Answers Correct Answer: B
When an economist says that the demand for a product has increased, this means that ______
A. consumers are now willing to purchase more of this product at each possible price.
B. product price has fallen and as a consequence consumers are buying a larger quantity of the
product.
C. the demand curve has shifted to the left. - Correct Answers Correct Answer: A
Which statement is not consistent with the law of supply?
A. The more of a good that will be supplied, the higher the price, other factors remaining
constant.
B. The less of a good that will be supplied, the lower the price, other factors remaining constant.
C. The quantity supplied of a good is directly related to the good's price.
, D. The quantity supplied of a good is inversely related to the good's price. - Correct Answers
Correct Answer: D
The law of supply states that if other factors remain equal as the price of a good goes up, the
quantity
supplied goes up; as the price of a good goes down, the quantity supplied goes down. Price and
quantity
supplied are directly related.
According to the law of supply, ______
I. supply curves slope upward.
II. supply curves slope downward.
III. price and quantity supplied are negatively related.
IV. price and quantity supplied are inversely related. - Correct Answers Correct Answer: I
The law of supply states that if other factors are equal as the price of a good goes up, the
quantity supplied
goes up; as the price of a good goes down, the quantity supplied goes down. This is shown
graphically by
a curve that slopes upward.
Whenever the price of bicycles increases, the ______ increases.
A. quantity of bicycles supplied
B. quantity of bicycles demanded - Correct Answers Correct Answer: A
An increase in the incomes of car buyers will increase the ______.
A. quantity of cars demanded
B. demand for cars - Correct Answers Correct Answer: B
Analysis: Introduction with correct
answers 100% 2026
The factors market is the market where ______
A. consumers buy products from businesses.
B. businesses buy factors of production from households.
C. households sell inputs to consumers - Correct Answers Correct Answer: B
Households own resources and make them available for sale to businesses in the resource
market.
Factors are also referred to as inputs or as resources of production. Products are purchased in
the product
or output market. Bonds are neither an output nor an input. They are bought and sold in
financial markets,
also sometimes referred to as capital markets.
Which of the following markets is the LEAST ACCURATELY described as a factor market?
A. The market for plumbers and electricians
B. The market for building materials
C. The market for residential houses - Correct Answers Correct Answer: C
What happens to the demand curve when consumers began purchasing more of a product due
to a decrease in price? - Correct Answers A change in price causes a movement along the
demand curve. When the price falls, the movement is downward and to the right.
Describe what would happen to a supply curve in each of the following situations:
1. An increase in the number of suppliers in the market
2. A decrease in taxes levied on the good produced in the market
,3. An increase in the price of the good produced in the market - Correct Answers 1. An increase
in the number of firms would result in the supply curve to shift right
2. A decrease in taxes would cause the supply to shift right
3. A change in the price would result in a
movement along the supply curve, not a shift
As the price of pizza increases, the ______ declines.
A. quantity of pizza demanded
B. demand for pizza - Correct Answers Correct Answer: A
The price of electricity is cheaper in the northwestern part of the United States and therefore
the ______ is
greater in the northwest.
A. demand for electricity
B. quantity of electricity demanded - Correct Answers Correct Answer: B
When an economist says that the demand for a product has increased, this means that ______
A. consumers are now willing to purchase more of this product at each possible price.
B. product price has fallen and as a consequence consumers are buying a larger quantity of the
product.
C. the demand curve has shifted to the left. - Correct Answers Correct Answer: A
Which statement is not consistent with the law of supply?
A. The more of a good that will be supplied, the higher the price, other factors remaining
constant.
B. The less of a good that will be supplied, the lower the price, other factors remaining constant.
C. The quantity supplied of a good is directly related to the good's price.
, D. The quantity supplied of a good is inversely related to the good's price. - Correct Answers
Correct Answer: D
The law of supply states that if other factors remain equal as the price of a good goes up, the
quantity
supplied goes up; as the price of a good goes down, the quantity supplied goes down. Price and
quantity
supplied are directly related.
According to the law of supply, ______
I. supply curves slope upward.
II. supply curves slope downward.
III. price and quantity supplied are negatively related.
IV. price and quantity supplied are inversely related. - Correct Answers Correct Answer: I
The law of supply states that if other factors are equal as the price of a good goes up, the
quantity supplied
goes up; as the price of a good goes down, the quantity supplied goes down. This is shown
graphically by
a curve that slopes upward.
Whenever the price of bicycles increases, the ______ increases.
A. quantity of bicycles supplied
B. quantity of bicycles demanded - Correct Answers Correct Answer: A
An increase in the incomes of car buyers will increase the ______.
A. quantity of cars demanded
B. demand for cars - Correct Answers Correct Answer: B
