Supply & Demand Preview Lesson

Supply & Demand Preview Lesson

Before we do anything else... I want you to notice some things about this graph.

Multiple Choice

True or False: On a Supply & Demand Graph, Economists list "Price" on the y-axis (aka. the vertical axis, aka. on the left side of the graph)

• True

• False

Multiple Choice

True or False: On a Supply & Demand Graph, Economists list "Quantity" on the x-axis (aka. the horizontal axis, aka. on the bottom of the graph)

• True

• False

Multiple Choice

According to the "Law of Supply," producers will make ____ products if the price of those products increases.

• More

• Fewer

Multiple Choice

The Supply Curve typically slopes ______.

• Downward

• Upward

Multiple Choice

According to the "Law of Demand," consumers will buy _____ products if the price of those products increases.

• More

• Fewer

Multiple Choice

The Demand Curve typically slopes ________.

• Downward

• Upward

Multiple Choice

True or False: Overly high prices lead to surpluses

• True

• False

Multiple Choice

True or False: Overly low prices lead to shortages

• True

• False

Multiple Choice

If Supply decreases, the Supply curve will shift...

• UP and to the LEFT

• UP and to the RIGHT

• DOWN and to the LEFT

Multiple Choice

True or False: Supply decreases when the costs of production increase... that's why a DECREASE in supply causes an INCREASE in prices.

• True

• False

Multiple Choice

If Demand decreases, the Demand curve will shift...

• UP and to the LEFT

• UP and to the RIGHT

• DOWN and to the LEFT