Supply and Demand Review/GPD Intro

Front

Ethan notices that when the price of movie tickets in his city goes up, fewer people go to the movies. What economic principle does this illustrate?

Back

The law of demand states that as the price of a good or service increases the quantity demanded for that good or service will decrease, assuming all other factors remain constant.

Front

What economic principle is illustrated by Benjamin's observation that when the price of his cakes increases, he is willing to bake and sell more cakes, and when the price drops, he bakes fewer cakes?

Back

As the price of a good or service increases, the quantity supplied by producers also increases, and vice versa.

Front

At a local farmers' market, William notices that the number of apples he brings to sell is exactly equal to the number of apples customers want to buy at the current price. What is this situation called in economics?

Back

A state of balance where demand equals supply.

Front

What factors could cause a shift in the demand curve for Zoe's coffee shop?

Back

Changes in consumer income, prices of related goods, consumer tastes and preferences, population demographics, and advertising and marketing efforts.

Front

Which factors could cause a shift in the supply curve for Priya's bicycles? Options: Changes in production costs, changes in technology, changes in the number of suppliers, changes in government regulations, and changes in expectations of future prices.

Back

Changes in production costs, changes in technology, changes in the number of suppliers, changes in government regulations, and changes in expectations of future prices.

Front

At a local farmers' market, William notices that there are more apples available than customers want to buy. On another day, there are fewer apples than customers want to purchase. How do these situations of surplus and shortage affect the price of apples in the market?

Back

Surplus leads to a decrease in price while shortage leads to an increase in price.

Front

What is the situation called when the number of apples Michael brings matches exactly the number customers want to buy, resulting in stable prices?

Back

Market equilibrium is the state where supply and demand are balanced, resulting in stable prices.

Front

What is the impact of technological advancement on the supply curve for smartphones?

Back

Technological advancements shift the supply curve to the right, indicating an increase in supply.

Front

What is the likely effect of an increase in consumer income on the demand curve for bakery products?

Back

An increase in consumer income shifts the demand curve to the right, indicating an increase in demand.

Front

What is the effect of new government regulations requiring more expensive filtration equipment on the supply curve for bottled water?

Back

Changes in government regulations can either shift the supply curve to the left or right, depending on the nature of the regulation.