Question

2. Demand terminology

Complete the following table by selecting the term that matches each definition.

Definition	Quantity Demanded	Demand Curve	Demand Schedule	Law of Demand
A graphical object showing the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices
The claim that, with other things being equal, the quantity demanded of a good falls when the price of that good rises
A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices
The amount of a good that buyers are willing and able to purchase at a given price

Apply your understanding of the previous key terms by completing the following scenario with the appropriate terminology.

Your boss would like your help on a marketing research project she is conducting on the relationship between the price of soup and the quantity of soup demanded. She hands you the following document:

Price of Soup	Quantity of Soup Demanded
(Dollars per can)	(Billions of cans)
0.50	2,000
0.75	1,500
1.00	1,000
1.25	750

Your task is to take this _______and construct a graphical representation of the data. In doing so, you determine that as the price of soup rises, the quantity of soup demanded decreases. This confirms the_________ .

Answer 1

1. A graphical object showing the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices - demand curve

2. The claim that, with other things being equal, the quantity demanded of a good falls when the price of that good rises - law of demand

3. A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices - demand schedule

4. The amount of a good that buyers are willing and able to purchase at a given price - quantity demanded

Your task is to take this demand schedule and construct a graphical representation of the data. In doing so, you determine that as the price of soup rises, the quantity of soup demanded decreases. This confirms the law of demand .