Supply and Demand

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

Thousands of people leave a small town due to a factory closing down.  Sales at the local grocery store become slow. What causes this change?

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

Goods that are bought and used together are 

• complementary goods
• substitute goods
• income goods
• unrelated goods

The diagram represents a

• increase in demand
• decrease in demand
• change in quantity demand
• none of the above

Which statement expresses a central idea of how the laws of supply and demand work?

• The government sets the prices for goods and services.
• Prices are determined by the interaction of producers and consumers.
• Consumers alone determine the prices for goods and services.
• Technology dictates the prices charged for goods and services.

What does this graph show?

• Shortage
• Surplus
• Supply Table
• Equilibrium

If a price floor was set at 320, what quantity would be purchased?

• 20
• 40
• 60
• 80

What is the Equilibrium Price?

• 1
• 2
• 3
• 4

The movement from Point A to Point B represents a(n)

• increase in the price.
• decrease in the quantity supplied.
• shift in the supply curve.
• Both Orange and Blue are correct.