How market works

which condition would lead to the highest prices?

• low supply, high demand

• high supply, high demand

• high supply, low demand

• low supply, low demand

According to the laws of supply and demand, when will companies produce more of a product?

• When the price goes down

• When demand decreases

• When they can sell it for a higher price

• When the economy in a recession

In general, if the price of good or service goes up, what happens to the demand for it?

• Demand goes up

• Demand stays the same

• Demand goes down

• None of them

In general, if the price of a good or service goes down, what happens to the demand for it?

• Demand goes up

• Demand stays the same

• Demand goes down

• None of them

If there was a flood in tomato fields, what would it effect and how?

• Supply goes up

• Supply goes down

• Demand goes up

• Demand goes down

Lowering the price of eggs will result in ?

• Supply goes down

• Supply goes up

• Demand goes down

• Demand goes up

why do prices go down when consumers start saving their money?

• Consumers become less willing to spend money on good and services.

• Manufacturers start producing fewer products.

• Demand for currency goes up as people begin saving.

• Demand for goods begins to outpace supply.

When there is more demand than supply.

• Disequilibrium

• Excess demand / shortage

• Excess supply / surplus

• Equilibrium

Any point that is not at equilibrium.

• Disequilibrium

• Excess demand / shortage

• Excess supply / surplus

• Equilibrium

When the market demand is greater than supply, what will the market economy do to eliminate the shortage?

• Decrease the demand

• Increase the price

• Decrease the price

• Decrease the supply