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How do lower prices tend to affect demand? |
They tend to increase the interest in a product. |
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According to the law of supply, price and quantity move |
along a track in the same direction. |
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The chart compares the price of graphic T-shirts to the quantity demanded. This chart shows the link between |
interest in a product and the price a consumer pays. |
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The point where supply and demand meet and prices are set is called |
equilibrium. |
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How do changing prices affect supply and demand? |
NOT As price increases, both supply and demand increase. NOT As price decreases, both supply and demand decrease. NOT As price increases, supply decreases, but demand increases. |
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How might a drop in price for washing machines affect the demand for dryers? |
The demand for dryers would most likely increase as the price for washing machines dropped. |
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The vertical axis of a demand curve shows |
the price of a product. |
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The graph examines the market for graphic T-shirts. Based on the graph, which event could cause the change shown? |
A product becomes less popular and fewer customers purchase it. |
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A market supply schedule shows |
the prices and quantity in an entire market. |
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Which statement best compares the laws of supply and demand? |
NOT The two economic laws exist in theory. They have no relation to economics in the real world. |
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