Supply and Demand Lesson 3

Draw

Draw the Law of Demand

Label Demand (D) and Price ($)

Multiple Choice

Equilibrium Price is the price where there is no surplus and no shortage. What happens when the price of product is lower than the Equilibrium Price?

• Nothing Happens

• There is a surplus

• There is a shortage

• There is a quorum

Multiple Choice

What is an incentive?

• A punishment for not completing a task
• A penalty for not participating in an activity
• Something that motivates or encourages someone to do something.
• A reward given after a task is completed

Multiple Choice

What happened to the rent for one-bedroom apartments when the new law ended rent control?

• Rent went up

• Rent went down

• Rent stayed the same

• there was no difference

Open Ended

Who would be more in favor of the changes that happened in the rental market in Santa Monica, landlords or tenants? Why?

Open Ended

Assume the minimum wage is set at the dotted black line. What are the costs and benefits of increasing it?

Open Ended

What is the difference between a price floor and a price ceiling?