Supply and Demand

Front

This part of the market determines DEMAND

Back

buyers

Front

This part of the market determines SUPPLY

Back

sellers

Front

For the law of demand, as price rises, what happens to quantity demanded?

Back

it goes down

Front

When quantity supplied and quantity demanded is equal

Back

equilibrium

Front

What does this curve represent? Options: supply, equilibrium, demand, surplus

Back

demand

Front

The diagram represents a

Back

increase in demand

Front

Goods that are bought and used together are: complementary goods, substitute goods, income goods, unrelated goods

Back

complementary goods

Front

Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store become slow. What causes this change? Options: Prices or availability of substitutes, Prices or availability of complementary goods, Change in the weather or season, Change in the number of buyers

Back

Change in the number of buyers

Front

What is likely to increase the demand for peanut butter? Options: Fewer children in the population, News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months., A big increase in the price of jelly., A report from the Surgeon General of the United States that eating peanut butter makes people nutty.

Back

News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.

Front

Which statement expresses a central idea of how the laws of supply and demand work?

Back

Prices are determined by the interaction of producers and consumers.