Supply and Demand

The regulating force in the marketplace is (a)   .

• acceptability
• credit
• competition
• depreciation

When more firms produce the same product, it means that (a)   of that product is produced at a higher quality.

• more
• less
• half
• some

In a free market economy, the (a)   does not interfere in the pricing.

• seller
• competition
• government
• consumer

As the price of goods or services increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases.

• The Law of Demand

• The Law of Supply

• Marginal Costs

• Equilibrium

As the price of goods increases, the quantity supplied goes up, and as the price decreases, the quantity supplied goes down

• The Law of Demand

• The Law of Supply

• Marginal Costs

• Equilibrium

If the price of fresh orange juice rises, consumers might switch to cheaper alternatives, such as frozen juice from concentrate. This is an example of ______.

• the substitution effect

• the income effect

• the money supply

• a monopoly

A table showing quantities of goods that would be supplied by one producer at different prices is ________

• a supply schedule

• a supply curve

• price ceiling

• productivity

Which scenario caused a change in quantity demanded for gas from point A to point B?

• The price of gas increased.

• The price of gas fell.

• The quality of gas worsened.

• The supply of gas increased.

Which scenario caused a change in the quantity supplied from point C to point D?

• The price of corn increased.

• The demand for corn decreased.

• The price of corn decreased.

• The demand for corn increased.

When we graph the demand and supply curves on the same plane, they intersect at a point. This is the _________.

• the equilibrium point

• the supply curve

• price fixing

• the quota