Lesson 1 Supply and Demand

Which of the following would lead to the highest prices?

• High Supply

• High Demand

• Low Demand

In general, if the price of a good or service goes up, what happens to the demand for that good or service?

• demand goes up

• demand stays the same

• demand goes down

• none of the above

What will happen to the price of tomatoes if there is a drought and less tomatoes are produced?

• the price will increase

• the price will decrease

• the price will stay the same

• the price will not be affected

A person who buys goods and services

• consumer
• entrepreneur
• resource
• currency

According to the Law of Demand, when prices drop...

• demand will also drop

• demand will increase

• quantity demanded is unchanged

• supply increases

The more money that a person makes, the more they are willing to spend..

• diminishing marginal utility

• substitute effect

• total revenue

• income effect

A product may be amazing, but unless consumers are __ and __ to purchase it, it's not in demand.

• willing

• wishing

• able

• planning

When prices rise for a particular product, consumers will purchase lower-priced similar items..

• income effect

• substitute effect

• diminishing marginal utility

• law of demand

What is the law of demand?

• When prices go down, demand increases;whe prices go up, demand decreases
• when prices go up, demand increases;when prices go down, demand decreases
• when prices go down, quantity demanded increases;when prices go up, quantity demanded decreases
• when prices go up ,quantity demanded increases; when prices go down, quantity demanded decreases

When you buy a PlayStation instead of an X-Box because the price of the PlayStation went up, this is an example of what?

• Complements

• Substitutions

• Elasticity

• Economics