Demand and Supply

Demand and Supply

Question 1

The relationship that is shared by quantity demanded and price is negative, thus if price increases it will lead to fall in quantity demanded, and on the other hand a decline in price will lead to a rise in quantity demanded. This relationship is show by the demand curve. A change in price will result in moving along the demand curve however changes in factors other than price will result in a shift in the demand curve (Moffatt, 2012). The demand curve below illustrates the data at Price $5.2 quantity demanded is 121 units however as ...