Demand and Supply Curve; Equilibrium, Shifting and Movement Along The Curve

Question 1

What does the demand curve represent?

Answer 1

The demand curve represents the relationship between the price of a good and the quantity demanded by consumers.

Question 2

True or False: An increase in consumer income typically shifts the demand curve to the left.

Answer 2

False

Question 3

Fill in the blank: The point where the demand curve and supply curve intersect is called the _____ price.

Answer 3

equilibrium

Question 4

Which of the following factors does NOT typically affect the supply curve? A) Production costs B) Technology C) Consumer preferences

Answer 4

C) Consumer preferences

Question 5

Short Answer: What is the effect of a decrease in the price of a substitute good on the demand curve of a related good?

Answer 5

It typically decreases the demand for the related good, shifting its demand curve to the left.