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Difficulty: EasyConcept and Law of Demand

Match each fundamental economic concept under the law of demand with its correct definition or description.

  • Law of DemandStates that as price increases, quantity demanded decreases, all other factors remaining constant.
  • Demand ScheduleA table showing the various quantities of a commodity a consumer is willing to buy at different prices during a given period.
  • Demand CurveA graphical presentation of the relationship between price and quantity demanded, sloping downwards from left to right.
  • Individual DemandThe quantity of a commodity a single buyer is willing and able to purchase at a given price and time.

Answer

The Law of Demand matches the inverse price-quantity relationship statement. The Demand Schedule matches the tabular display of quantities demanded at various prices. The Demand Curve matches the downward-sloping graphical representation. Individual Demand matches the single consumer purchasing requirement.
Each demand term is matched to its canonical definition: the Law of Demand states the inverse price-quantity rule, the schedule is the table, the curve is the graphical plot, and individual demand relates to a single buyer.

Step-by-Step Solution

1
Identify the basic principle of the Law of Demand.
It specifies that higher prices lead to lower quantities demanded (inverse relationship).
This is the core definition of the law of demand.
2
Distinguish between tabular and graphical representations.
The schedule is tabular, while the curve is graphical.
Data in rows and columns forms a schedule; plotting it creates a curve.
3
Define individual demand.
It represents a single consumer's willingness and ability to buy.
Individual demand isolates one buyer, whereas market demand sums all buyers.

Key Concept

Concept and Law of Demand
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Topics

Concept and Law of Demand

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