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

Back

complementary goods

Front

What causes the change in sales at the local grocery store when thousands of people leave a small town due to a factory closing down?

Back

Change in the number of buyers

Front

Which of the following 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? Options: The government sets the prices for goods and services., Prices are determined by the interaction of producers and consumers., Consumers alone determine the prices for goods and services., Technology dictates the prices charged for goods and services.

Back

Prices are determined by the interaction of producers and consumers.