LU 4 Changes in Demand & Supply

Question 1

Increase in demand

Answer 1

Will Result in an increase in the price of the product and an increase in the quantity exchanged (Rightward shift of the demand curve)

Question 2

Decrease in demand

Answer 2

Will result in a decrease in the price of the product and a decrease in the quantity exchanged (Leftward shift of the demand curve)

Question 3

Increase in supply

Answer 3

Will result in a fall in the price of the product and an increase in the quantity exchanged (Right or downward shift of the supply curve)

Question 4

Decrease in supply

Answer 4

Will result in an increase in the price of the product and a decrease in the quantity exchanged (Left or upward shift of the supply curve)