1. Discuss whether demand, equilibrium price, and quantity increases or decreases for gas and red meat, respectively, in the following two scenarios.
(1) Consumers expect the price of the gas to be higher in the future
(2) A medical report is published showing that red meat is hazardous to your health
The law of demand states that as the price goes up, the quantity demanded goes down, other things constant. An alternative way of saying the same thing is that price and quantity demanded are inversely related, so the demand curve slopes downward to the right. The law of supply states ...
This discusses the concepts related to demand, equilibrium price, and quantity