SUPPLY AND DEMAND REVIEW

Local stores sell a particular pair of sneakers for $80. A picture of a basketball star Lebron James wearing these sneakers appears in all the local Ohio newspapers. The next day, sales for sneakers start to rise.
What is likely to happen to the price of the sneakers over the next several weeks?

• People will refuse to buy these sneakers.
• The price for the sneakers will not change.
• The price will fall as people learn Lebron James wears them.
• The price of the sneakers will rise as more people want similar sneakers.

Read the following situation to determine what the outcome would be:

A new type of television set uses 3-D images. many stores will have large quantities of the older style televisions. What will happen to the price of these older televisions? 

• The price will remain the same.
• The price will rise.
• The price will fall.

A new video game has just been released before the winter holiday season, when may families buy gifts. This is a video game that many children want. Many parents buy this video game system for their children. The price throughout December is $249.

What is most likely to happen to the price for this video game in January, when the most popular gift buying season is over?

• The price will go up for the new year then fall.
• Sellers will lower their prices when the demand for the video game slows.  
• The price for the video game will remain at $249.
• The price will rise since since the games manufacturer will refuse to produce anymore.

The price at which the quantity demanded by consumers equals the quantity suppled by the producers is know as what?

• Competition
• The Law of Supply
• The Law of Demand
• The Equilibrium Price

This term refers to how much of a good or service consumers are willing to buy at a particular price.

• Demand
• Compettition
• Supply
• Equilibrium Price

If the price of a good is ________________ than the equilibrium price, the supply of the good will be greater than the quantity of goods demanded.

• Lower 
• Higher
• Supply
• Resources

If the price of a good is __________________ than the equilibrium price, then the for that good will be greater than the supply available.

• The Same
• Higher
• Competition
• Lower

When the demand for a product or service is higher than the supply this causes what?

• shortage
• consumer
• surplus
• equilibrium

The desire or willingness a consumer has to purchase a good or a service is called?

• shortage
• supply
• price
• demand

The amount of goods or services available is called?

• supply
• demand
• producer
• consumer