\"JD. 11 12. 13. 14. 15. W A decrease in the prices of computer chips for PCs will increase the supply of PCs. The law of supply indicates that the supply ofa good increases when the price of the good rises. An increase in the price of chocolate cake causes the demand curve for chocolate cake to shift to the left, where as an increase in income causes a movement along the demand curve for chocolate cake. A movement along the downward-sloping demand curve for ice-cream can be caused b a change in income. Quantity demanded is the maximum amount oEa product that buyers are willing and able to purchase at various prices for sale in a market. On the contrary, demand is the amount of a good that buyers are willing and able to purchase at a given price. An increase in consumer's income will cause a decrease in the demand for an inferior good. Two goods are considered to be related goods by buyers if the price of one good increases, buyers consume more of the other. This indicates the two goods are complemenm. Demand shows the maximum amount ofa product that buyers are willing and able to purchase at various prices for sale in a market. An increase in both supply and demand will lead to an increase in the equilibrium price and an indeterminate change in the market equilibrium quantity. The law of supply implies the quantity of a good decreases, when the price of the good falls. Equilibrium is a situation in which the market price has not reached the level at which quantity supplied equals quantity demanded. The market demand curve makes a shift to the right when the price of the good imelf decreases lvlarket supply is a horizontal summation of the supply curves for all producers willing and able to supply their product to the market in a given length of time. A ceiling price in a competitive market will result in persistent surpluses of a product. A government tax per unit of output reduces supply