Market Forces of Demand and Supply

Question 1

Received cash from investments

Answer 1

Income

Question 2

As P increases, Qd decreases. As P decreases, Qd increases

Answer 2

Law of Demand

Question 3

Can be used in place of another

Answer 3

Substitute goods

Question 4

As demand increases, income increases

Answer 4

Normal good

Question 5

Rules and regulations imposed by the government affects the supply

Answer 5

Changes in government policy

Question 6

The relationship between demand and supply is…

Answer 6

Inversely proportional

Question 7

As demand decreases, income decreases

Answer 7

Inferior good

Question 8

Population growth leads to consumption or demand for goods

Answer 8

Number of buyers

Question 9

As S increases, Qs increases. As S decreases, Qs decreases.

Answer 9

Law of Supply

Question 10

Foresees the prices

Answer 10

Expectations of future prices

Question 11

The demand of the good depends on the buyer’s liking

Answer 11

Taste and preference

Question 12

Goods that are consumed together

Answer 12

Complement goods

Question 13

Advancement is efficient for the benefit of producing high-quality goods

Answer 13

Changes in technology

Question 14

Increase or decrease in the cost of raw materials to make goods can affect the supply

Answer 14

Changes in cost of production