Supply and Demand Questions

Draw

Draw the Law of Demand

Label Price ($) and Demand (D)

Multiple Choice

Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers

• are different

• are equal

• is higher for the product demanded

• is higher for the product supplied

Multiple Choice

On a market demand and supply graph, the vertical axis shows

• demand

• equilibrium

• prices

• quantity

Multiple Choice

On a market demand and supply graph, the horizontal axis shows

• demand

• equilibrium

• prices

• quantity

Multiple Choice

On a market demand and supply graph, the point of market equilibrium always happens

• at the highest point on the demand curve

• at the point where the demand and supply curves intersect

• at the lowest point of the supply curve

• at the center point of the graph, irrespective of the curves

Multiple Choice

When there is a shortage, producers raise prices in an attempt to

• separate the quantity supplied and demanded

• raise the quantity demanded

• equalize the quantity supplied and demanded

• lower the quantity supplied

Multiple Choice

Suppliers often reduce prices because they

• have a shortage of products to sell

• have a surplus of products to sell

• want to decrease consumer demand

• want to increase the product supply

Multiple Choice

A state of disequilibrium happens when an imbalance exists between

(What is quantity vs quality?)

• quality supplied and quality demanded

• quality supplied and quantity demanded

• quantity supplied and quality demanded

• quantity supplied and quantity demanded

Multiple Choice

Supply can be changed by

• equilibrium

• income

• input costs

• substitutes

Multiple Choice

In the price system of a market economy, prices are determined by

(What are key words to look for?)

• central planning

• market forces

• political forces

• private investors

Multiple Choice

Higher prices generally

(Think about the Law of Supply)

• discourage consumers from seeking a substitute

• discourage producers from entering a market

• motivate consumers to buy

• motivate producers to enter a market

Multiple Choice

Lower prices generally

(Think about the Law of Demand)

• discourage consumers from buying

• discourage producers from leaving a market

• motivate consumers to buy

• motivate producers to enter a market

Multiple Choice

The maximum amount that sellers may charge for a good or service is called a

• maximum wage

• minimum wage

• price ceiling

• price floor

Open Ended

What is an example of a price ceiling?

Open Ended

What is an example of a price floor?

Open Ended

Graph 1 shows a shift in demand. How did this shift affect the equilibrium price and what factors could have caused this shift?

Open Ended

Graph 2 shows a shift in supply. How did this shift affect the equilibrium price and what factors could have caused this shift?

Think About

labor

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