Economics - AM Systems '21

Economics is the study of how people satisfy unlimited needs/wants with limited resources...

• True

• False

Supply is defined as: The amount of a good or service that individuals are _______________ & ________________ to offer

The economic concept of scarcity deals with which of the following concepts

• Too many purchasing options

• Finite amount of goods/services

• High demand for a product

The Law of Supply states that: as price goes _________ , supply goes __________.

The Law of Demand states that: as _______ goes up, _________ goes down.

Demand elasticity means that the demand of a particular good/product is not impacted by price

• True

• False

Demand Inelasticity means that the demand for a particular good/services is not impacted by changes in price

• True

• False

Is this graph showing a Shortage or a Surplus?

*Hint: What can you tell about quantity demanded vs quantity supplied?

• Surplus

• Shortage

Is this graph showing a Shortage or a Surplus?

*Hint: What can you tell about quantity demanded vs quantity supplied?

• Shortage

• Surplus

When is market equilibrium achieved?

• Quantity supplied is greater than quantity demanded

• Quantity supplied is less than quantity demanded

• Quantity supplied is equivalent to quantity demanded