Supply and Demand

In a Market Economy, who determines the supply & demand of products?

• Business & Consumers
• the government
• kids
• Parents

In a Market Economy

• Everyone is equal
• No Competition exists
• Sellers compete to make profit
• The government has most of the control

Which statement is true about the Law of Demand?

• As prices fall for a particular good or service, the demand for that item also falls
• As prices fall for a particular good or service, the demand increases.
• As the price increases for a particular good or service, the demand will also increase.
• Demand does not exist

Which statement is true about the Law of Supply?

• As prices fall for a particular good or service, the supply for that item also falls.
• As prices fall for a particular good or service, the supply for that item increases
• As the price increases for a particular good or service, the demand will also increase.
• Supply does not exist

A Supply & Demand Graph helps determine what?

• The cost of production
• The Equilibrium/ Market Price
• Competition in the Market
• The Profit Motive

If consumer spending is down and consumers are purchasing less, would it change the supply or demand of goods?

• Supply
• Demand

If it rains heavy this year, and farmers can't plant crops, would it affect the supply or demand of the crops?

• supply
• demand

What determines price in a Market Economy?

• the government
• Executives
• supply and demand
• Aliens

The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs
• Buy fewer CDs
• Quantity demanded will not change

The law of supply states that if the price of CD’s rise, suppliers will

• Supply more CDs

• Supply fewer CDs

• Quantity supplied will not change