Supply and Demand

What determines the prices of goods and services?

• Supply

• Demand

• Supply and demand

• Goods

What happens to price when the market has a surplus

• price drops

• price stays the same

• price increases

• price triples

Kanye West's new shoe the Yeezy Boost sold out in stores. This is an example of...

• shortage

• surplus

• equilibrium

• supply

What might happen if the demand for a new type of XBOX began rising quickly?

• The manufacturer would begin making fewer new XBOXs

• Microsoft would raise the price of the new XBOXs

• Microsoft would stop selling the new XBOX

• Microsoft would lower the price of the new XBOX

Which condition would lead to the highest prices?

• Low supply, high demand

• High supply, high demand

• High supply, low demand

• Low supply, low demand

If demand for a product increases beyond the ability of produces to supply the product, what will happen to the price of the product?

• the price will increase

• the price will decrease

• the prices will stay the same

• the price will decrease until producers can make more

A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?

• The supply will probably go up

• The supply will probably go down

• Nothing would happen

Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?

• The price will go up.

• The price will go down.

• Nothing would happen