Which of the following best describes the law of demand?

• As price increases, quantity demanded increases
• As price increases, quantity demanded decreases
• As price decreases, quantity demanded decreases
• Price and quantity demanded are unrelated

The supply curve generally slopes upward from left to right.

What is the mathematical form of a demand function?

• Qd = a - bP

If the price of a substitute good increases, what will likely happen to the demand for the original good?

• It will decrease
• It will stay the same
• It will increase
• It will become zero

The law of supply states that as the price of a good decreases, the quantity supplied increases.

Name one determinant of demand other than the price of the good.

• Income

Which of the following is NOT a determinant of supply?

• Production cost
• Technology
• Taste
• Number of producers

If the demand curve shifts to the right, what does this indicate?

• Decrease in demand
• Increase in demand
• No change in demand
• Decrease in supply

Market demand is the sum of individual demands in the market.

What is the general relationship between price and quantity supplied according to the law of supply?

• Positive