Supply and Demand

If the demand for an item goes up which of the following could be a factor

• Price of Resources

• Number of Sellers

• Expectations

• Government Involvement

A surplus is when:

• There is more demand than supply

• There is an equal amount of supply and demand

• The demand of a good increases as you get less income

• There is more supply than demand.

As supply increases, what happens to the quantity of an item?

• It increases

• It decreases

• It neither increases nor decreases

• It plumets

As demand increases, what happens to the price of a good?

• It increases

• It decreases

• It neither increases nor decreases

• It varies

Which is not a shifter of demand

• Number of Buyers

• Price of Related Goods

• Preferences

• Number of Sellers

What is the difference between Normal Goods and Inferior Goods

• Normal goods have adequate quality where as inferior goods have bad quality

• Normal goods are purchased more as income increases. Inferior goods are purchases more as income decreases.

• Normal goods are when demand increases faster than demand. Inferior goods are the opposite.

• Inferior goods are worse than Normal goods.

Tony starts to sell hotdogs. In his first month, he has a supply of 200 hotdogs but only sells 150. What is the result of this first month?

• A shortage of 50 hotdogs

• A surplus of 50 hotdogs

• A surplus of $50

• A shortage of $50.

Which of the following best describes the Law of Marginal Utility?

• As supply increases, demand decreases.

• The more income you have the more you buy.

• The more you consume something the less satisfaction you will get from it.

• The lower the price, the higher the demand.