Question

Given the Demand and Supply schedule for hoverboards:

Price	Qty Demanded	Qty Supplied
1000	100	10000
800	1000	9000
600	2000	8000
400	5000	5000
200	8000	2000
0	12000	0

1. e. What determinant of supply or demand has changed?
2. h. What economic principles are at work?

Answer 1

e>Here the determinant is own price of the commodity because as we can see from the demand schedule that as the price is decreasing, the demand is increasing and supply is decreasing.

f>Here two economic principles are working

1>LAW OF DEMAND, which says that by making other factors constant, the demand or the quantity demanded is inversely related to the price

2>LAW OF SUPPLY, which states that by making other factors constant, supply is directly related to the price that is, if price increases the supply will also increase and vice Versa.