Supply and Demand

If the price of a good or service increases, the demand it for it will _______.

• decrease

• increase

• stay the same

If the price of a good or service decreases, the demand for it will _______.

• decrease

• increase

• stay the same

What might happen if the demand for a new video game rises quickly?

• The manufacturer will make fewer video games

• People would refuse to buy the video game

• The manufacturer would increase the price of the game

Companies will produce more of a product when______.

• they can sell it for a higher price

• the demand goes down

• the price for the product goes down

What is scarcity?

• A shortage of a product

• Having too much of a product

• The amount a consumer is willing to pay for a product

What conditions lead to high prices of a product?

• A low supply and a low demand for a product

• A low supply and a high demand for a product

• A high supply and a high demand for a product

• A high supply and a low demand for a product