Supply and Demand

Front

Which statement describes the law of demand?

Back

As prices rise, quantity demanded decreases

Front

Why is a supply line upward sloping?

Back

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

Front

Example of the Law of Demand at work

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

3

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