Supply and Demand Curves

University of Phoenix Material

Supply and Demand Curves

Answer the following questions

Write the definition for each of the following:

1. Law of Demand
The law of demand states that the demand of goods is related to the pricing. If the pricing of the good goes up the demand of the good goes down.

2. Law of Supply
The law of supply states that when the price rises on a good, the supply rises. If the pricing of a good rises, suppliers supply more in hopes to make a profit.

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