Demand, Supply and Price

Multiple Choice

Which of the following is an example of a microeconomic decision?

• Deciding whether to stop at the store before school

• Setting national interest rates

• Determining the unemployment rate

• Measuring the GDP of a country

Multiple Choice

When prices go up, what happens to the quantity demanded according to the law of demand?

• Quantity demanded goes down

• Quantity demanded goes up

• Quantity demanded stays the same

• Quantity demanded doubles

Multiple Choice

What is demand?

• The desire to own something and the ability to afford it.
• A graph that shows the quantity demanded at every price.
• The usefulness of a product expressed in a dollar sign.

Multiple Choice

Which of the following best describes the concept of supply in economics?

• The amount of a product offered for sale at different prices

• The amount of money a store makes

• The number of stores in a city

• The demand for a product

Multiple Select

Select all the factors that stores must consider when deciding what products to stock and at what price (based on images 0 and 1).

• The price they can charge

• The quantity they can supply

• The demand for the product

• The cost of production

Multiple Choice

Which of the following is the best example of the law of supply?

• a milling company builds a new factory to process flour for export
• a catering company buys a new dishwasher to make their work easier
• a food producer increases the number of acres of wheat he grows to supply a milling company 
• a sandwich shop increases the number of sandwiches they supply every day when the price is increased

Fill in the Blanks

The monetary value of a product as established by supply and demand is called

.

Multiple Choice

Which of the following statements about market equilibrium is correct?

• It is when the quantity supplied equals the quantity demanded

• It is when prices are always rising

• It is when there is always a surplus

• It is when demand is greater than supply

Multiple Choice

What determines the price and the quantity produced of most goods?

• The consumers perception of necessity
• the interaction of supply and demand
• the availability of substitutes
• the quantity of the goods that are produced

Multiple Choice

According to the graph, what is the equilibrium price where the market demand and supply curves intersect?

• $15

• $10

• $20

• $25