Supply and Demand

Front

Which statement describes the law of demand?

Back

As prices rise, quantity demanded decreases.

Front

Which explains why a supply line is upward sloping?

Back

the Law of Supply states there is a direct relationship between price and quantity

Front

Which is an example of the Law of Demand at work? Options: The price of the pizza goes up when the price of cheese goes up., Demand for pizza goes down when tacos become more popular, The price of pizza falls when the demand for pizza falls, Demand for pizza rises when the price of pizza falls

Back

Demand for pizza rises when the price of pizza falls

Front

What causes a shift in the demand curve?

Back

A change in an area other than price.

Front

The amount of a good or service that producers are willing and able to sell at all possible prices during a given period of time.

Back

Supply

Front

The market equilibrium price is the price at which

Back

the quantity demanded is the same as the quantity supplied

Front

What is the Equilibrium Price?

Back

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.

Front

When there is a shortage the price will usually?

Back

rise

Front

The diagram represents a(n)

Back

increase in supply

Front

The diagram represents a

Back

increase in demand