Supply and Demand

___________ is the quantity a consumer is willing and able to purchase at each price.

• supply

• scarcity

• demand

• opportunity cost

The ____________ says that as the price of a good rises the quantity of the good consumers are willing and able to buy will decrease.

• law of supply
• law of equilibrium
• law of scarcity
• law of demand

__________ is the quantity a seller is willing and able to sell at each price.

• supply
• demand
• quantity demanded
• price

The ___________ says that as price rises the quantity a seller is willing and able to sell will increase.

• law of demand

• law of supply

• equilibrium
• scarcity

A market-clearing or _________________ is one where the quantity of a good that buyers are willing and able to buy matches the quantity of a good that producers are willing and able to sell.

• equilibrium price

• price stability

• balance
• harmony

In a __________ economy, consumers decide what to produce, firms decide how to produce, and the price system decides who will get the items produced.

• market
• command
• planned
• mixed

As the market/equilibrium price in the market changes, it sends __________ to buyers and sellers about how much they should be willing and able to buy and sell. 

• commands
• warnings
• messages
• signals

If the price is set too high in a market (above the equilibrium price), there will be a larger quantity supplied than there is a quantity demanded, resulting in a ________.

• Shortage
• Equilibrium
• Surplus
• Demand

If the market is left alone and given time, the ___________ will see the surplus as a signal that the price is too high, and that they have produced too much.

• producers
• competitors
• government
• consumers

__________ will lower the price (put it on sale) to sell the excess inventory, and reduce the amount that they produce.

• Producers

• Suppliers
• Wholesalers
• Manufacturers