Supply and demand Test Review

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

• demand goes up
• demand stays the same
• demand goes down
• none of the above

a person or company that makes, grows, or supplies goods to sell is called the?

• damand
• price
• producer
• shortage

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

• demand goes up
• demand stays the same
• demand goes down
• none of the above

The amount of goods or services available is called?

• supply
• demand
• producer
• consumer

An individual or group who purchases goods.

• producer
• consumer
• goods
• services

the main factor that causes a change in supply

• price

• style

• taxes

• regulations

Once a business has paid all of its costs, the money left over is ___

• revenue

• profit

• supply

• tax

When prices rise, supply levels will also increase. If prices drop, supply will also fall.

• law of supply

• law of demand

• determinant of supply

• cost of production

The desire to have some good or service and the ability to pay for it

• supply

• equilibrium

• demand

• quantity demanded

According to the Law of Demand, when prices drop...

• demand will also drop

• demand will increase

• quantity demanded is unchanged

• supply increases