Question

test 3 review sheet oct 3, 2025 supply & demand name edward amz
list below the graph what happened in each graph.

1. the law of demand says: a decrease in the price of a product will ____ the quantity of its demand because...
2. an increase in the quantity of demand can only be due to one thing a change in the ____
3. demand changes when... (biter)
4. explain the differences between substitutes and compliments.
5. a complimentary good oftentimes will influence the demand of it compliment good. why?
6. an increased desire for a substitute good will change the demand for its alternative good because...
7. what would happen if the taste and preference for a product increased...
8. what reason(s) for a \change in demand\ is similar to a \change in supply\...
9. a decrease in the price of a product will decrease the quantity of its supply because ...
10. an increase in the quantity of supply can only be due to one thing and change in ____
11. the intersection of the demand and supply curves the market is called the...

Explanation:

1. The Law of Demand states that, ceteris paribus, a decrease in price leads to an increase in the quantity demanded because consumers are more willing and able to buy at lower prices.
2. An increase in the quantity of demand is due to a decrease in price, as per the law of demand. Movements along the demand - curve are caused by price changes.
3. Demand changes when there are changes in BITER factors: Buyer income, Input prices (cost of production affecting related goods), Tastes and preferences, Expectations of future prices, and Number of buyers.
4. Substitutes are goods that can be used in place of one another. An increase in the price of one leads to an increase in the demand for the other. Complements are goods that are used together. An increase in the price of one leads to a decrease in the demand for the other.
5. A complementary good influences the demand of its compliment good because they are consumed together. If the price of one complement falls, the demand for the other rises as consumers are more likely to buy both.
6. An increased desire for a substitute good changes the demand for its alternative good because consumers will switch to the substitute when they prefer it, increasing its demand and decreasing the demand for the alternative.
7. If the taste and preference for a product increase, the demand curve shifts to the right, leading to a higher equilibrium price and quantity.
8. One reason for a "Change in Demand" similar to a "Change in Supply" is expectations. For example, if producers expect prices to rise in the future, they may decrease current supply, and if consumers expect prices to rise, they may increase current demand.
9. A decrease in the price of a product will decrease the quantity of its supply because, according to the law of supply, there is a positive relationship between price and quantity supplied, ceteris paribus. Producers are less willing to supply at lower prices.
10. An increase in the quantity of supply can only be due to a change in the price of the product. Price changes cause movements along the supply - curve.
11. The intersection of the demand and supply curves in the market is called the equilibrium. At this point, the quantity demanded equals the quantity supplied.

Answer:

1. increase; because consumers are more willing and able to buy at lower prices.
2. price
3. there are changes in Buyer income, Input prices, Tastes and preferences, Expectations of future prices, and Number of buyers.
4. Substitutes are goods used in place of one another (an increase in the price of one increases the demand for the other). Complements are goods used together (an increase in the price of one decreases the demand for the other).
5. They are consumed together. A fall in the price of one leads to an increase in the demand for the other.
6. Consumers will switch to the substitute, increasing its demand and decreasing the demand for the alternative.
7. The demand curve shifts to the right, leading to a higher equilibrium price and quantity.
8. Expectations (e.g., if producers expect prices to rise, they may decrease current supply; if consumers expect prices to rise, they may increase current demand).
9. According to the law of supply, producers are less willing to supply at lower prices.
10. price
11. equilibrium