16.3_Intro to Econ_Demand and Supply in a Market Economy

Factors that affect demand cause the demand curve to _____________.

• always move left

• always move right

• move left or right

• stay flat

Supply is affected by the number of suppliers and the cost of production.

• True

• False

If the demand for frozen yogurt increases in July, sellers of frozen yogurt will most likely drop their prices in July.

• True

• False

In a command economy, the price of a fresh-baked pie would be ________________.

• based on the demand

• based on the production cost

• set by the government

• the same as it has always been

In the United States, prices of goods are a result of ___________________.

• government decisions

• supply and demand

• suppliers and producers

• opportunity costs and trade-offs

Demand refers to the amount of a good or service that ______________________.

• consumers are able to buy at a given price

• people are willing to buy at any price

• people are willing and able to buy at any price

• people are willing and able to buy at a given price

As the price of a good goes up, producers tend to supply less.

• True

• False

When the price of bananas goes down, the result will be a greater demand for bananas.

• True

• False

The United States government encourages competition between sellers by __________.

• encouraging monopolies

• banning monopolies

• fixing prices

• limiting available goods

The local store has slippers priced at $12, but no one is buying them. The store is most likely to ____________________.

• raise the price to $15

• raise the price to $12.99

• keep the price the same

• lower the price to $10