What Do Supply and Demand Curves Have in Common

question 29

Multiple Choice

What do supply and demand curves have in common?

• A) They both usually slope upward.
• B) They both show a relationship between quantity and price.
• C) They both usually slope downward.
• D) They can both shift in response to changes in income or wealth.
• E) Neither of them is influenced by the size of the population.

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Definitions:

Normative Economic Statements

Assertions about economic outcomes or policies that incorporate judgments about what is desirable or undesirable, reflecting values and norms rather than hard facts.

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

Equal Distribution

The equitable allocation of resources, income, or assets among all members of a society or group.

Income

The total money received by an individual or household over a specified time period, including wages, salaries, benefits, and other earnings.