1. Demand refers to sellers' willingness and ability to provide goods for sale in a market.

• a. True
• b. False 2. According to the law of demand, a higher price is associated with which of the following, other things being equal?
• a. Increase in quantity demand
• b. Decrease in supply
• c. Increase in demand
• d. Decrease in quantity demand

3. When a demand curve shifts, economists call this a change in quantity demanded.

• a. True
• b. False

4. The "demand" for a product specifies a(n) _____ relation between price and quantity demanded.

• a. direct
• b. inverse
• c. positive
• d. neutral

5. The law of demand asserts a direct or positive relation between product price (P) and quantity demanded (Qd) by buyers.

• a. True
• b. False

6. Which of these shows that, as market price changes, quantity demanded changes?

• a. Cost curve
• b. Production possibilities model
• c. Income response curve
• d. Demand curve

7. Demand and quantity demanded are much the same as need or want.

• a. True
• b. False

8. A graph of the relation between a good's prices and the amounts of the good that people are willing and able to buy is defined as a _____.

• a. quantity supplied line
• b. supply curve
• c. quantity demanded line
• d. demand curve

9. Supply refers to sellers' willingness and ability to provide goods for sale in a market.

• a. True
• b. False

10. A change in quantity supplied describes a movement along a _____.

• a. production possibility curve
• b. supply curve due to a price change
• c. demand curve due to a price change
• d. supply curve due to a cost change

11. A shift in supply of wheat results when a factor (other than wheat price) that affects willingness and ability to sell a product changes.

• a. True
• b. False