Supply and Demand Lesson 1

Draw

Draw the Law of Demand. Use arrows and labels to describe what happens to demand when price increases.

Draw

Draw the Law of Supply. Use arrows and labels to describe what happens to supply when price rises.

Multiple Choice

What is the difference between quantity supplied and quantity demanded when the price is $10?

• 15

• 20

• 30

• 10

Multiple Choice

What is the difference when the price is $2?

• 20

• 15

• 5

• 30

Multiple Choice

What is the quantity supplied at $8?

• 15

• 40

• 35

• 10

Multiple Choice

What is the quantity demanded at $8?

• 15

• 10

• 35

• 40

Multiple Choice

Is there a surplus or a shortage when the price is $10?

• Shortage

• Surplus

Multiple Choice

What happens to quantity demanded at $100 when demand decreases?

• the equilibrium price rises

• the equilibrium price falls

• quantity supplied increases

• quantity supplied decreases

Open Ended

If Hometown Pizza closes, what will happen to the supply of pizza? How will that affect the equilibrium price of pizza?