Unit 3: Supply and Demand Practice Test

What determines the prices of goods and services?

• Supply

• Demand

• Supply and demand

• Goods

A market is said to be in equilibrium when

• when demand is higher than the supply

• when demand is lower than the supply

• when the demand and supply quantities are equal

• when the supply is doubled the demand

What exists when quantity supplied is greater than quantity demanded?

• Surplus

• Shortage

• Overflow

• Mass outrage

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

• shortage

• surplus

• equilibrium

• supply

What happens to price when the market has a surplus

• price drops

• price stays the same

• price increases

• price triples

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

In a market, price is determine by the interaction of:

• inputs and outputs

• supply and demand

• push and pull factors

• demand and means on distribution

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

What is likely to happen if the price of a new pair of sneakers went up?

• Demand for the sneakers would increase

• Demand for the sneakers would decrease

• Merchants would begin offering sales on the sneakers

• It would be impossible to find a pair in stores