Discussion:
Choose one of the following and determine whether there is correct usage of the terms "demand," "quantity demanded," "supply" and "quantity supplied." Why or why not?
• As the price of pizza increases, consumers' demand decreases.
• Whenever the price of bicycles increases, the supply of bicycles increases.
• The price of electricity is cheaper in the northwestern part of the United States and, therefore, the demand for electricity is greater in the northwest.
• An increase in incomes of car buyers will increase the quantity demanded for cars.
• An increase in the quantity demanded of lobsters means consumers are willing and able to buy more lobsters at any price - whatever the current price is.
A decrease in the supply of frog legs means suppliers will provide fewer frog legs in the market at any price - whatever the current price is.