Supply, Demand, and Equilibrium

Which statement is correct about the Law of Demand?

• When the price of a good decreases, quantity demanded decreases

• When the price of a good decreases, quantity demanded increases

Minimum wage is an example of a ___________.

• Price ceiling

• Price floor

The result of a price floor, such as minimum wage, is a _____________.

• Shortage

• Surplus

In 2025, Apple manufactures the iMac G3 with all original technology, but it has very little interest from consumers. Which choice below best describes this scenario?

• Qs > Qd

• Qd > Qs

What is being illustrated on the graph?

• Price ceiling

• Price floor

Which statement is correct about the Law of Supply?

• When the price of a good decreases, quantity supplied decreases

• When the price of a good decreases, quantity supplied increases

Is the blue line located in the graph representing a price ceiling or price floor?

• Price ceiling

• Price floor

According to the supply and demand schedule, what is the equilibrium price?

• $1.00

• $1.25

• $1.50

• $1.75

This farmer just had a price floor placed on his wheat crops, raising their price. Will this cause a shortage or a surplus of wheat?

• Shortage

• Surplus

Based on the movement of the supply curve, did the equilibrium price increase or decrease?

• Increase

• Decrease