1. Describe the difference between demand and supply. 2. How does the law of demand and supply affect the market? 3. How does equilibrium occur in market? 4. What are the price controls of the government?

1. Describe the difference between demand and supply. 2. How does the law of demand and supply affect the market? 3. How does equilibrium occur in market? 4. What are the price controls of the government?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 3.4P

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Definition Definition Economic principle that states that as the price of a good or service increases, the quantity demanded by consumers decreases, while a decrease in price leads to an increase in quantity demanded, assuming all other factors affecting the demand remaining constant.

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