Supply and Demand

What is the definition of supply?

• The amount of a product that is demanded by consumers
• The amount of a product that consumers are willing and able to buy at a given price
• The amount of a product that producers are willing and able to sell at a given price
• The total amount of a product available in the market

What determines the equilibrium price of a product?

• Government regulations
• Supply only
• Demand only
• Interaction of supply and demand

If demand increases while supply remains constant, what happens to prices and quantity?

• Prices increase and quantity decreases
• Prices decrease and quantity increases
• Prices increase and quantity increases
• Prices decrease and quantity decreases

What happens to the quantity demanded as the price of a good or service decreases?

• It increases
• It remains constant
• It decreases
• It has no effect

What happens to the supply curve when there is an increase in supply?

• It shifts to the left
• It remains unchanged
• It becomes steeper
• It shifts to the right

What is the definition of quantity demanded?

• The amount of a product that is demanded by consumers
• The amount of a product that consumers are willing and able to buy at a given price
• The total amount of a product available in the market
• The amount of a product that producers are willing and able to sell at a given price

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

• It decreases
• It increases
• It remains constant
• It has no effect

Which of the following is NOT a determinant of supply?

• Taxes and subsidies
• Consumer preferences
• Technological advancements
• Resource prices

If supply increases while demand remains constant, what happens to prices and quantity?

• Prices decrease and quantity decreases
• Prices decrease and quantity increases
• Prices increase and quantity increases
• Prices increase and quantity decreases

What is demand?

• The quantity of goods or services consumers are willing to purchase
• Government policies that affect production costs
• The quantity of goods or services producers are willing to offer for sale
• The cost of inputs required for production