Supply and Demand Curves ECO/365 Version 6
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 is the concept in economics when price decreases which results in a increase in demand. An example is if a popular product suddenly drops in price, the demand for the product would increase. If the price of this product goes up, the likelihood of people will purchase the product.
2. Law of Supply The law of supply in economics is when price of goods increase, the quanity of supply increases. Manufactuers or suppliers can gain profitability when the price goes up by adding more product to the market.
Which of the following graphs best demonstrates the law of demand? D) IV a) b) c) d)
I II III IV
Which of the following graphs best demonstrates the law of supply? C) III a) b) c) d)
I II III IV
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Supply and Demand Curves ECO/365 Version 6
Copyright Š 2013 by University of Phoenix. All rights reserved.
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