ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Equilibrium.
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Leftovers.
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Surplus.
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Shortage
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Detailed explanation-1: -An increase in demand means that consumers plan to purchase more of the good at each possible price.
Detailed explanation-2: -What is the consequence of excess demand in the pizza slice market? Rent control limits price increases for rental housing.
Detailed explanation-3: -If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.
Detailed explanation-4: -An improvement in technology that reduces the cost of production will cause an increase in supply. Alternatively, you can think of this as a reduction in price necessary for firms to supply any quantity. Either way, this can be shown as a rightward (or downward) shift in the supply curve.