Distinguish between the laws of demand and supply. How are the laws of demand and supply illustrated graphically?
What will be an ideal response?
The law of demand states that there is an inverse relationship between the price and the quantity demanded. The law of supply demands that there is a direct relationship between the price and the quantity supplied. The demand curve is downward sloping while the supply curve is upward sloping.?
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Which of the following changes in the price index produces the greatest rate of inflation: 106 to 112, 112 to 118, or 118 to 124?
a. 106 to 112 b. 112 to 120 c. 118 to 126 d. All of these changes produce the same rate of inflation.
Price discrimination refers to:
A. selling a given product for different prices at two different points in time. B. any price above that which is equal to a minimum average total cost. C. the selling of a given product at different prices to different customers that do not reflect cost differences. D. the difference between the prices a purely competitive seller and a purely monopolistic seller would charge.
The ________ determines the supply of money.
A. Congress B. President C. Federal Reserve D. banking system
An increase in the price of digital cameras will result in a(n):
A. Shift of the demand curve for digital cameras to the left B. Decrease in the demand for digital cameras C. Shift of the demand curve for digital cameras to the right D. Movement up and to the left along the demand curve for digital cameras