Question

Understanding the Law of Demand

In this section, please reference your guided notes and watch this video (https://youtu.be/kUPm2tMCbGE) before answering any questions.

Question 1 (1 point)

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The Law of Demand: As price decreases, quantity of a good demanded ______________.

Question 1 options:

	increases
	decreases
	stays the same

Question 2 (1 point)

In the video, demand for jet fuel oil stayed higher even when the price of oil increases. What happened to demand for oil to make plastics when the price increased?

Question 2 options:

	Increased a lot
	Decreased
	Stayed the same
	Decreased some and then stopped completely

Question 3 (1 point)

Why did the demand for jet fuel oil stay pretty high even though the prices increased?

Question 3 options:

	Because they could use corn to fuel jets.
	Because people drive cars money and use fuel for driving.
	Because people stopped flying on planes.
	Because there aren't any substitutes for jet fuel.

Understanding the Law of Supply

In this section, please reference your guided notes and watch this video (https://youtu.be/nKvrbOq1OfI) before answering any questions.

Question 4 (1 point)

The Law of Supply is the fact that as prices increase, there is a(n) ______________ in quantity supplied of a good or service.

Question 4 options:

	increase
	decrease
	lack
	minimal change

Question 5 (1 point)

In the oil market, producers that have higher costs of production cannot turn a profit until the price of oil is _________________.

Question 5 options:

	higher
	lower

Question 6 (1 point)

When the price is higher, more producers will enter the market to sell their good/service because they are more likely to make a profit.

Question 6 options:

	True
	False

Answer 1

#Please rate positively...thank you

0-1) Answer increases. price decreases, - Law of Quantity demand says, as the demanded increases and as price increases Quantity demanded decreases. (4-2) Answer - Decreased, - Because there is substitute o of oil while making plastic. C-3 there are not any substitute Ansoer. Because for jet fuel. A-4 Answer - Increase. There is positive relation between price and quantity Supplied. 0.5 - If Answer Higher. price is higher only then they could earn profit 0-6 Answer. True - Higher prices of good will it good have higher encourage new producer price & then profit because could be earned.