eco365 r6 supply demand curves

University of Phoenix Material

Supply and Demand Curves

Answer the following questions

Write the definition for each of the following:

1. Law of Demand

The law of demand states that quantity demanded rises as price falls and other things stay constant. The quantitly of a good demanded is inversely related lto the good’s price. (Colander, 2013, Chapter 4). For example, as the price of a good increase the demand for that good will decrease. The law of demand also relates to a decrease in the price of a good will increade the demand for that product.

2. Law of Supply

The law of supply states quality supplied rises as price rises while other things stay constant. In addition, if the quantity supplied falls as the price falls and oither things stay constant (Colander, 2013, Chapter 4). For example, an increase in price results in an increase in the quantity suppled.

Which of the following graphs best demonstrates the law of demand? Graph D

a) I
b) II
c) III
d) IV

Which of the following graphs best demonstrates the law of supply? Graph C

a) I
b) II
c) III
d) IV

Reference:

Colander, D. C. (2013). Microeconomics (9th ed.). Retrieved from The University of Phoenix eBook Collection database.