Intro to Supply and Demand

Multiple Choice

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

Multiple Choice

Generally speaking, the lower the price, the greater the quantity demand.

• True
• False

Multiple Choice

As prices rise, sellers will offer more goods and services for sale.

• Supply
• Law of Supply
• Change in supply
• demand

Multiple Choice

What is the law of supply?

• As the price of a good increases, the quantity supplied decreases.

• As the price of a good decreases, the quantity supplied increases.

• As the price of a good increases, the quantity supplied increases.

• There is no relationship between the price of a good and the quantity supplied.

Multiple Choice

What is the law of demand?

• The law of demand states that as the price of a good or service increases the quantity demanded for that good or service will decrease, assuming all other factors remain constant.

• The law of demand is the direct relationship between the price of a good or service and the quantity demanded for that good or service.

• The law of demand is not affected by any other factors.

• The law of demand only applies to luxury goods and services.

Multiple Choice

According to the law of supply,

• the lower the price the larger the quantity consumed

• the higher the price the larger the quantity produced

• if the price of a good rises some firms will produce less

• if the price of a good falls new firms may enter the marker

Open Ended

Why is it important for both supply and demand to work together in setting prices in a market economy?

Multiple Choice

Based on the definition provided, which of the following do you have a demand for?

• A smartphone

• A pair of high-heeled shoes

• A sports car

• None of the above

Multiple Choice

What does a demand schedule show?

• The various quantities of a product someone is willing to buy at different prices

• The total revenue from selling a product

• The cost of producing a product

• The supply of a product at different prices

Multiple Select

Which of the following statements about a demand curve are correct?

• It shows the relationship between price and quantity demanded.

• It is usually downward sloping.

• It shows the cost of production.

• It connects points representing price and quantity demanded.

Fill in the Blank

According to the law of demand, when price increases, quantity demanded ___.

Open Ended

How does the law of demand explain the relationship between price and quantity demanded?

Multiple Choice

Which of the following best explains what happens when the price of widgets increases from $3 to $4, according to the demand curve shown?

• The quantity demanded increases from 4 to 6.

• The quantity demanded decreases from 6 to 4.

• The demand curve shifts to the right.

• The demand curve shifts to the left.

Multiple Select

Which of the following are considered factors that can shift the demand curve?

• Tastes and preferences

• Price of the good itself

• Number of buyers

• Expectations of future prices

Labelling

Label the curve correctly

Drag labels to their correct position on the image

Demand

Quantity

Price

Multiple Choice

What happens to the demand curve when the income of the Pago-Pagans declines after a typhoon hits the island?

• The demand curve shifts to the left

• The demand curve shifts to the right

• The demand curve becomes steeper

• The demand curve becomes flatter

Multiple Choice

If the price of Frisbees, a substitute good for boomerangs, decreases, what is likely to happen to the demand for boomerangs?

• The demand for boomerangs will decrease

• The demand for boomerangs will increase

• The demand for boomerangs will remain unchanged

• The demand curve for boomerangs will shift to the right

Multiple Choice

The price of boomerang t-shirts decreases. What effect does this have on the demand for boomerangs, assuming they are complementary goods?

• The demand for boomerangs will increase

• The demand for boomerangs will decrease

• There will be no effect on the demand for boomerangs

• The demand curve for boomerangs will shift to the left

Multiple Choice

Which of the following scenarios would most likely cause the demand curve for boomerangs to shift to the right?

• A decrease in the price of substitute goods

• A decrease in consumer income

• An increase in the popularity of boomerangs due to a money back guarantee

• A decrease in the price of boomerangs

Multiple Choice

If many Pago-pagans believe they may lose their jobs in the near future, what is likely to happen to the demand for goods?

• Demand will increase, shifting the curve to the right

• Demand will decrease, shifting the curve to the left

• There will be no change in demand

• The demand curve will become vertical

Multiple Choice

Which of the following statements about supply is correct?

• Supply refers to the amount consumers are willing to buy at all prices.

• Supply refers to the amount producers are willing to sell at all prices.

• Supply is only the output of one producer.

• Supply does not change with price.

Multiple Choice

Based on the supply schedule provided, what is the quantity supplied of widgets when the price per widget is $3?

• 2

• 4

• 6

• 8

Multiple Select

Select all the correct statements about the relationship between price and quantity supplied, as shown in the supply curve for widgets.

• As price increases, quantity supplied increases.

• The supply curve is downward sloping.

• The supply curve shows a direct relationship between price and quantity supplied.

• At lower prices, producers supply fewer widgets.

Multiple Choice

A new manufacturing technology makes it easier to make the product and causes a shift in the supply curve. What is the new equilibrium point after implementing the new technology? (Hint: Determine which direction a easier production shifts the supply curve and use that direction to pick the resulting equilibrium point.)

• $6 and 20,000

• $4 and 30,000

• $6 and 30,000

• $4 and 20,000

Drag and Drop

We rely on Hawaii to provide pineapples for us to eat. After the wildfire in Maui, Hawaii, the ​

Placeholder

and the ​

Placeholder

.

Drag these tiles and drop them in the correct blank above

supply goes down

price goes up

supply goes up

demand goes down

demand goes up

price goes down

Drag and Drop

Turkeys for Thanksgiving are raised on poultry farms. If the Bird Flu hits and kills most of the turkeys, ​

Placeholder

and the ​

Placeholder

.

Drag these tiles and drop them in the correct blank above

supply goes down

price goes up

supply goes up

demand goes down

demand goes up

price goes down

Drag and Drop

If the Quantity Demanded for lipstick is HIGH at $4.66 but then the Prices go up to $8.99, what will happen to the Quantity Demanded for lipstick?

Placeholder

Drag these tiles and drop them in the correct blank above

It will increase

It will stay the same

It will not change

It will decrease

Labelling

Match each label to the correct part of the graph.

Drag labels to their correct position on the image

Price

Title of Market

Demand

Equilibrium

Supply

Quantity

Labelling

Label the curve correctly

Drag labels to their correct position on the image

supply

Demand

Quantity

Price

Dropdown

A ​

Select answer

in consumer income will decrease demand.

Labelling

Label the parts of the supply and demand graph.

Drag labels to their correct position on the image

Supply

Quantity

Price

Demand

Equilibrium

Multiple Choice

Which statement below would be the most correct to describe the equilibrium price?

• $600

• $600 per month

• $500 per month

• $700

Multiple Choice

How does the increase in the price of gasoline affect the demand for cars?

• An increase in the price of gasoline decreases the demand for cars.

• An increase in the price of gasoline increases the demand for cars.

• The price of gasoline has no effect on the demand for cars.

• An increase in the price of gasoline first increases, then decreases the demand for cars.

Dropdown

If the Price of a burger is $10 dollars but then changes to $8.50 what will happen to the QUANTITY Demanded?

Select answer