Supply and Demand

When prices rise which of the following is true?

• Consumers will buy more

• Consumers will buy less

• Producers will make more

• Producers will make less

When prices fall which of the following are true?

• Consumers will buy less

• Consumers will buy more

• Producers will make more

• Producers will make less

In the Pearl Exchange Activity, when the Red Tide occurred, there was a shift in one of the supply and demand curves. Which of the following accurately describes the shift?

• The Supply Curve Shifted to the Right (Expectations)

• The Supply Curve Shifted to the Left (Expectations)

• The Demand Curve Shifted to the Right (Expectations)

• The Demand Curve Shifted to the Left (Expectations)

In the Pearl Exchange Activity, when the price of Diamonds fell, there was a shift in one of the supply and demand curves. Which of the following accurately describes the shift?

• The Supply Curve Shifted to the Right (Change in Resources)

• The Supply Curve Shifted to the Left (Change in Consumer Preferences)

• The Demand Curve Shifted to the Right (Change in Consumer Preferences)

• The Demand Curve Shifted to the Left (Change in Consumer Preferences)

Diamonds, in the Pearl Exchange Activity, are best described as which of the following in relation to Pearls?

• Competition

• Property Rights

• Complement

• Substitute

In the Pearl Exchange Activity, the shifting of the supply and demand curves due to multiple events resulted in which of the following?

• Sometimes higher prices

• Sometimes lower prices

• New Equilibrium

• No change occurred

The idea that as prices rise, consumers will buy less and as prices fall, consumers will buy less is related to which concept?

• Law of Supply

• Law of Demand

• Equilibrium

• Competition

The idea that as prices rise, suppliers will make more and as prices fall, suppliers will make less is related to which concept?

• Law of Supply

• Law of Demand

• Equilibrium

• Competition

When the government imposes a minimum price for something, be it labor, a good or a service, it is known as a:

• Price Floor

• Price Ceiling

• Shortage

• Disaster

When the government imposes a maximum price for something, be it labor, a good or a service, it is known as a:

• Price Floor

• Price Ceiling

• Shortage

• Disaster