Supply and Demand Review

What determines the prices of goods and services?

• Supply

• Demand

• Supply and demand

• Goods

What exists when quantity supplied is greater than quantity demanded?

• Surplus

• Shortage

• Overflow

• Mass outrage

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

the price at which a good is bought and sold in a market equilibrium is called

• retail price

• equilibrium price

• discount price

• base price

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

The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs
• Buy fewer CDs
• Quantity demanded will not change

The law of supply states that if the price of CD’s rise, suppliers will

• Supply more CDs
• Supply fewer CDs
• Quantity supplied will not change

Which of the following will cause an increase in demand for snowboards?

• More costly production methods 
• A decrease in the price of lift tickets at resorts in Colorado 
• A decrease in consumer income   
• A decrease in the population 

What does a “surplus” (extra amount) of goods in a market imply?

• Prices are too high
• Prices are too low
• Supply is too low
• Demand is too high