ECO/365 week 1 assignment

University of Phoenix Material

Supply and Demand Curves

Answer the following questions

Write the definition for each of the following:

1. Law of Demand
If we raise the price of a product that will lower the quantity demanded for the product. If we lower the price of a product that will raise the quantity demanded.

2. Law of Supply
If the price goes up then the quantity supplied goes up. If the price goes down then the quantity supplied goes down.

Which of the following graphs best demonstrates the law of demand?

a) I
b) II
c) III
d) IV

Which of the following graphs best demonstrates the law of supply?

a) I
b) II
c) III
d) IV