Supply and Demand

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

• True
• False

Consumer wants are the same as consumer demand.

• True
• False

In economics, the term demand refers to the quantity of a good that people

• will buy at one particular price over a long time period
• would like to consume on a given date
• will buy at many different prices at a particular time
• would like to have available during a given time period

If the price of butter increases, then we would expect that the demand for margarine would fall.

• True
• False

Summer is upon us, and people begin purchasing bathing suits in large numbers. What causes this change?

• Change in income
• Prices or availability of substitutes
• Change in the weather or season
• Change in the number of buyers

The graph illustrates a ...

• Demand Curve
• Supply Curve
• Elasticity Curve
• Price Ceiling

When the demand for a product or service is higher than the supply this causes what?

• shortage
• consumer
• surplus
• equilibrium

The amount of goods or services available is called?

• supply
• demand
• producer
• consumer

suppliers often reduce prices because they

• have a shortage of products
• have a surplus of products to sell
• want decrease consumer demand
• want to increase the product supply

The point where supply and demand are balanced is?

• product
• demand
• surplus
• equilibrium