ECON 3100 Questions with Complete Solutions

The Law of Demand Correct Answer-as price increases, quantity demanded decreases. If price decreases, quantity demanded increases. The Law of Supply Correct Answer-producers offer more of a good as its price increases and less as its price falls. Demand Scheduled Correct Answer-Shows relationship between price & quantity demanded Equilibrium Correct Answer-When the demand and supply curves intersect. This is the best price to set and quantity to produce. If price goes up, producers want to produce more. However, demand will go down. If there is a surplus, price will go down, as will quantity. Market is in equilibrium when the quantity demanded equals the quantity supplied The Demand Curve Shows Correct Answer-The quantities that buyers are willing to purchase at different prices A Supply Schedule Shows Correct Answer-how much of a good or service would be supplied at different prices