Market Economy

What is a market economy?

• Producers are free to produce what they want, and consumers can buy whatever they want or need.

• Producers are told what to produce, and consumers don't have product choices.

• Producers are free to produce what they want, but consumers can only buy from one company.

• The government controls all aspects of a market, and only a few select items are available.

What is supply?

• The number of consumers that want something.

• The benefit you give up by choosing one thing over another.

• The amount of something that is available.

• The thing that motivates you to do something.

What is demand?

• The number of consumers that want something.

• The benefit you give up by choosing something over another.

• The amount of something that is available.

• The thing that motivates you to do something.

When there is a HIGH demand and LOW supply, the price will...

• Decrease

• Stay the same

• Be exactly $1,000,000

• Increase

When there is a LOW demand and HIGH supply, the price will...

• Decrease

• Stay the same

• Be exactly $1,000,000

• Increase

In the month of December, sunscreen goes on sale for 50% off the price it sells for in July. What is the supply and demand for sunscreen?

• High Demand and Low Supply

• Low Demand and High Supply

During the holiday season, the most popular toy increases in price because many kids want it. What is the supply and demand for the popular toy?

• High Demand and Low Supply

• Low Demand and High Supply

When the newest version of the iPhone came out, the older version went on sale. What is the demand for the older iPhone?

• High Demand and Low Supply

• Low Demand and High Supply

A store is running low on Valentines Day candy during the month of February. What is the supply and demand for Valentines candy?

• High Demand and Low Supply

• Low Demand and High Supply

The video game "Madden NFL 23" has just been released, and the older version "Madden NFL 22" goes on sale. What is the supply and demand for "Madden NFL 22"?

• High Demand and Low Supply

• Low Demand and High Supply