Marketing 3.2 Supply & Demand

Understanding economics helps consumers and producers use their resources effectively. 

• True
• False

Macroeconomics studies how individuals make decisions about what to produce and what to consume. 

• True
• False

Consumers will pay more for a product if the supply of that product increases. 

• True
• False

A supply curve demonstrates the relationship between price and the quantity of a product supplied. 

• True
• False

As competition increases, businesses find greater opportunities for success. 

• True
• False

As the price of a product increases, businesses will produce more of that product if possible. 

• True
• False

A supply curve and a demand curve are usually parallel. 

• True
• False

The point at which supply and demand are equal for a product is known as 

• the demand curve
• the supply curve
• the market price
• supply and demand are never equal

Marketers are most interested in 

• microeconomics
• macroeconomics
• price increases
• government regulation

If there are no alternative products to satisfy consumers’ needs, 

• the supply will be large
• the price will be low
• supply and demand are unaffected
• consumers will pay more