Supply & Demand

What might happen if the demand for a new type of sneaker began to rise quickly.

• The manufacturer would begin making fewer sneakers.
• The sneaker company would raise the price of the sneakers.
• The sneaker company would lower the price of the sneakers.

According to the laws of supply and demand, when will companies produce more of a product?

• When they can sell it for a higher price
• When the price people will pay for it goes down
• When demand increases

Which of these is neither a good nor a service?

• piano lesson
• gallon of gasoline
• $20 bill
• meal at a restaurant

The equilibrium point is at the confluence of the supply and demand curves?  What does confluence mean?

• midpoint
• topmost point
• intersection

Who would set the equilibrium point for the price of anew type of sneaker?

• It is set by market forces
• the manufacturer
• the consumer

Why do prices go down when consumers start saving money?

• Demand for goods begins to outpace supply
• Manufacturers start producing fewer products
• Consumers become less willing to spend money on goods and services

What is likely to happen if the price of a new pair of sneakers went up?

• Demand for the sneakers would increase
• demand for sneakers would decrease
• Merchants would begin offering sales on the sneakers.

What factor is most likely to cause an increase in demand for anew type of automobile?

• the price of the car going up
• a rumor that the car's gas tank is prone to explosion
• a commercial in which the car is endorsed by a popular celebrity

What condition would lead to the highest prices?

• low supply, high demand
• high supply, low demand
• high supply, high demand

When do we say the market has cleared?

• when consumers begin saving their money
• when supply and demand balances out
• when supply outpaces demand