Supply and demand 4/5

Question 1

The price of goods /services increase meaning the overall______ will decrease

Answer 1

demand

Question 2

If price of goods/services increase, the demand ______ ,

this is known as Law of ______

Answer 2

Decreases

Demand

Question 3

if The price of something increases, the _______ will decrease. Therefore

the consumer will?

Answer 3

demand,

substitute/buy something else instead

Question 4

If the price of a product increases, why will the consumer stop buying it/take less of it?

-whats it called?

Answer 4

The amount they can buy will have decreased,

-income effect

Question 5

If the price of a product increases, what will consumers do,

what is it called?

Answer 5

they will buy less of it

buy something else -substitution effect

Question 6

What are two effects of a price rise?

Answer 6

income effect

Substitution effect

Question 7

What do you think law of demand is?

Answer 7

If the price of something increases, the demand will decrease visa versa, given ceterius paribus

Question 8

What do you think quantity demand means?

Answer 8

The amount that consumers can afford to spend on goods/services over a given time period.