Supply and Demand HPMS Practice

When the two lines of Supply and Demand intersect on a graph. The meeting point is called the ___

• Price Cost Point

• Equilibrium Point

• Zero Delta

• Crossover Point

6. If a business owner accidentally received a shipment with a double order of strawberries, what would the business owner do to the price of the strawberries to try and sell them all before they go bad?

• Lower the price

• Increase the price

• Keep the normal price

• Quit after the boss yells at him for his mistake

1. The two factors that determine WHAT will be produced for consumers are __

• Supply and Demand

• Available resources and consumer preferences

• Available incentives and motivations

• Cause and Effect

The amount of a good or service producers are willing and able to sell at a certain price is called

• Demand

• Consumption

• Resources

• Supply

5. The amount of money exchanged for a good or service is called PRICE? Does supply and demand help determine PRICE?

• Yes

• No

• No, it's consumer sovereignty

• Never

Jigsaw Puzzles are in great demand these days. There is also a limited supply. If a business has some in stock, what will they probably do to the price?

• Lower the prices, to clear the shelves for Toilet Paper

• Keep the price the same, people need things to keep themselves calm

• Raise the price, a profit should be made

• Nothing - people should stay home and work old puzzles

The amount of a good or service that consumers are willing and able to buy at a certain price.

• Supply

• Demand

• Consumer Choice

• Opportunity Cost

Every year on Black Friday (the day after Thanksgiving) businesses have extremely low prices on certain items. Why would a business do this?

• To create high supply

• To create high demand

• To create jobs

• To create chaos

What term is used to describe people who SELL goods and services?

• Consumers

• Producers

• Entrepreneurs

• Businesses

What term is used to describe people who BUY and USE goods and services?

• Consumers

• Producers

• Entrepreneurs

• Businesses