Supply and Demand

Supply and Demand

What are supply and demand?

Multiple Choice

Things that you can buy or sell are called:

• Goods

• Services

• Muppet Babies

Multiple Choice

Lucas fixes his friend's sink.  He is providing a _____________.

• trade
• good

• service

Multiple Choice

The desire or willingness a consumer has to purchase a good or a service is called?

• shortage
• demand

Multiple Choice

The amount of a good or service that is available to consumers

• Supply
• opportunity cost

• Shortage

Supply

If the supply of goods and is more than the demand, the prices will go down or decrease

If the supply is lower than the demand, the prices will increase or rise

Demand

When the demand is greater or more than the supply the prices will increase.

When the demand is less than supply, the prices for goods and services will decrease or go down.

Multiple Choice

Cold weather in Florida has damaged this year’s orange crop. Farmers have only half of the usual amount of oranges to sell. What will happen to the price of oranges?

• The price will go up.
• The price will go down.

Multiple Choice

When the demand for a product or service is higher than the supply this causes what?

• shortage

• equilibrium

Multiple Choice

Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?

• The price will go up.

• The price will go down.