Supply and Demand Review

Laws of Supply and Demand

• Sellers

• Price Low; Quantity Low

• Price High; Quantity High

• Uphill Curve

• Buyers

• Price Low; Quantity High

• Price High; Quantity Low

• Downhill Curve

Drag and Drop

Shay is buying a house. According to the law of ​

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, she would like to pay ​

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. Kody is selling a house. According to the law of ​ ​

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, he would like to earn ​

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.

Drag these tiles and drop them in the correct blank above

demand

$100,000

supply

$125,000

• Buyers

• Price Low; Quantity High

• Price High; Quantity Low

• Downhill Curve

Multiple Choice

Which of the following describes why surpluses are above the equilibrium price?

• prices above equilibrium are higher so buyers don't purchase as many

• prices above equilibrium are high so sellers don't produce as many

Multiple Choice

Which of the following describes why shortages are below the equilibrium price?

• prices below equilibrium are lower so more buyers make purchases

• prices below equilibrium are low so sellers make more available so they will have enough for all buyers

Multiple Choice

"A seller's market arises when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. Since there are fewer homes available, sellers are at an advantage. In a seller's market, homes sell faster, and buyers must compete with each other in order to score a property." Which graph corresponds with the mrket described in the quote?

• Buyers

• Price Low; Quantity High

• Price High; Quantity Low

• Downhill Curve

Match

Match the description of what's happening with its graph.

Price Increased & Quantity Demanded Decreased

Demand Decreased & Price Decreased

Demand Increased & Price Increased

Price Decreased & Quantity Demanded Increased

• Price Increased & Quantity Demanded Decreased

• Demand Decreased & Price Decreased

• Demand Increased & Price Increased

• Price Decreased & Quantity Demanded Increased

Labelling

Label the following

Drag labels to their correct position on the image

decreases

demand

Equilibrium before shift

Equilibrium after shift

Match

Match the description of what's happening with its graph.

Price Increased & Quantity Supplied Increased

Supply Decreased & Price Increased

Supply Increased & Price Decreased

Price Decreased & Quantity Supplied Decreased

• Price Increased & Quantity Supplied Increased

• Supply Decreased & Price Increased

• Supply Increased & Price Decreased

• Price Decreased & Quantity Supplied Decreased

Multiple Choice

Which of the following would cause more people to want a product and what's pictured in the graph?

• a well-liked celebrity wears the product in public

• product makes users break out in a rash that won't go away

• amounts of customers' paychecks fall

• vacation spot has 5 shark attacks in a day

Labelling

Label the following

Drag labels to their correct position on the image

Equilibrium after shift

increases

supply

Equilibrium before shift

Multiple Choice

Which of the following shows an increase in price because more buyers want the product?

Multiple Choice

Which of the following shows what would happen if a product is proven to cause cancer?

Multiple Choice

Which of the following would decrease supply & cause this to happen in a market?

• delivery truck breaks down

• cost of input goes down

• new equipment speeds up production process

• employees come to work well rested & wide awake

Match

Match the following graphs to their descriptions.

more buyers want a product & it becomes more expensive

more of an item is produced & it becomes less expensive

fewer people want a product & its price falls

less of a product is available & its price rises

• more buyers want a product & it becomes more expensive

• more of an item is produced & it becomes less expensive

• fewer people want a product & its price falls

• less of a product is available & its price rises