Exercise #1 Concepts

Name ...............................................................  

1. What does the law of demand state?
 

2. What does it mean to say that price and quantity are inversely related?
 

3. How does quantity demanded differ from demand?
 

4. The text says that demand is a function of five factors that will increase  or decrease demand. What are these factors?
 
 
 

5. If demand for a good decreases will the demand curve shift to the left or the right?
 

6. If a supply curve is upward sloping what does that mean?
 
 

7. The text says that supply is a function of five factors. What are these factors?
 
 
 

8. If the supply of a good increases will the supply curve shift to right or to the left?
 
 

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