Circular flow/ Supply and Demand

The law of demand states that as Price _____ demand decreases

What is the Law of Supply?

Supply and demand work together to determine ______

Where supply and demand meet

• Equilibrium

• Meeting Point

• Market

• Quantity

When prices fall bellow the equilibrium price

• Surplus

• Shortage

• Supply

• Demand

Prices rise above equilibrium

• Surplus

• Shortage

• Supply

• Demand

Where do factors of production (land, labor, etc) come from in the circular flow model?

• Factor market

• Product market

• Firms

• Individuals

In the circular flow diagram firms pay wages for which factor of production?

• Land

• Labor

• Capital

• Entrepreneurship

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circular flow model?

• Product market

• Factor market

• Firms

• Individuals