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Supply and Demand3,4,20,21\Supply and Demand\Supply,demand, equilibrium test questions.docx Graph 6-4 ____ 33. 1. Alternatively, as the price decreases, the quantity supplied decreases. First of all, lets discuss What is demand and supply? The demand curve for the foreign exchange is shown in where the rate of foreign exchange and the quantity of foreign exchange demanded have been shown on the Y axis and X axis respectively. At the same time, as the BoE increases the money supply, the aggregate-demand curve also shifts to the right. A positive relationship exists between price and quantity when it comes to the supply curve. If an object’s price on the market increases, the producers would be willing to supply more of the product. Pearson’s correlation between price and demand is -0.83 indicating a v ery strong relationship which can potentially explain a high portion of demand variation. Macroeconomics deals with aggregate economic quantities, such as national output and national income. If the object’s price on the market decreases, they are less willing to supply a lot and the quantity decreases. C)a negative relationship between the price of a good and the quantity demanded. The supply curve demonstrates that as price increases, the quantity supplied increases. H:\AP Econ\2. Demand and LR Aggregate Supply Price Level Quantity of Output As the economy becomes better able to produce goods and services over time, primarily because of technological progress, the long-run aggregate-supply curve shifts to the right. B)a positive relationship between the price of a good and the quantity demanded. An increase in demand shifts the demand curve rightward and an increase in supply shifts the supply curve rightward. Th us, we rely on price as Academia.edu is a platform for academics to share research papers. 2 Reading 13 Demand and Supply Analysis: Introduction INTRODUCTION In a general sense, economics is the study of production, distribution, and con- sumption and can be divided into two broad areas of study: macroeconomics and microeconomics. Demand refers to the entire relationship between price and the quantity demanded -- the entire line on a graph or the entire equation in an algebraic demand equation.

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