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according to the law of demand |
there is an inverse relationship between price and quantity demamded |
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the distinction between a normal and an inferior good is |
when incomes increases , demand for a normal good increases while demand for an inferior good falls |
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the distinction between substitutes and complements is |
substitute good are used for the same purposes while complementary good are used together |
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according to the law of supply |
there is a positive relationship between price and quantity supplied as the price of a product increases, firms will supply less of it to the market |
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Market price is determined by |
both supply and demand |
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"an increase in supply decreases the equilibrium price. the decrease in price increases demand" |
FALSE" decreases in price affect the quantity demanded. not demand. |
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