Supply and Demand

What is supply?

• The amount of a product that consumers are willing to buy at a given price
• The amount of a product that producers are willing to offer for sale at a given price
• The price at which a product is sold in the market
• The cost of producing a product

According to the law of supply, what happens to the quantity supplied as the price of a good or service increases?

• It increases
• It decreases
• It remains constant
• It depends on the type of good or service

What can cause the entire supply curve to shift?

• Changes in price
• Changes in consumer preferences
• Changes in the cost of production
• Changes in income levels

What is demand?

• The amount of a product that producers are willing to offer for sale at a given price
• The amount of a product that consumers are willing to buy at a given price
• The price at which a product is sold in the market
• The cost of producing a product

According to the law of demand, what happens to the quantity demanded as the price of a good or service increases?

• It increases
• It decreases
• It remains constant
• It depends on the type of good or service

What can cause the entire demand curve to shift?

• Changes in price
• Changes in consumer preferences
• Changes in the cost of production
• Changes in the number of producers in the market

What is the point at which the quantity of a good or service that consumers are willing to buy is equal to the quantity that producers are willing to sell, at a given price?

• The equilibrium point
• The price ceiling
• The price floor
• The market price

What happens to the price and quantity of a good or service if the demand curve shifts to the right?

• Price and quantity both increase
• Price decreases and quantity increases
• Price and quantity both decrease
• Price increases and quantity decreases

What happens to the price and quantity of a good or service if the supply curve shifts to the left?

• Price and quantity both increase
• Price decreases and quantity increases
• Price and quantity both decrease
• Price increases and quantity decreases

Which of the following factors can cause a shift in the supply curve?

• Changes in consumer preferences
• Changes in technology
• Changes in income levels
• Changes in the price of related goods or services