8 Supply & Demand

The total amount of a product (good or service) available for purchase at any specified price.

• Supply

• Demand

• Equilibrium

A consumer's desire and willingness to pay a price for a specific good or service.

• Supply

• Demand

• Equilibrium

The quantity demanded and quantity supplied are equal. There is neither a surplus or a shortage.

• Supply

• Demand

• Equilibrium

Law of Supply

• the quantity supplied of a good rises when the price of the good rises

• the quantity demanded of a good falls when the price of the good rises

Law of Demand

• the quantity supplied of a good rises when the price of the good rises

• the quantity demanded of a good falls when the price of the good rises

What quantity of chocolate bars are demanded by consumers at a price of 20 cents each?

• 4

• 6

• 8

• 10

What quantity of chocolate bars will producers supply for a price of $1 each?

• 4

• 6

• 8

• 10

What is the market equilibrium price?

• 50 cents

• 60 cents

• 80 cents

• $1

What is the quantity supplied and demanded at the market equilibrium price?

• 2

• 6

• 8

• 10

At a price of $4, what is the quantity producers will supply?

• 60

• 50

• 30

• 10