SUPPLY AND DEMAND

What is the role of consumers in a market economy?

• To determine production
• To determine supply
• To determine demand
• To determine prices

What is supply?

• The quantity of a good or service that consumers are willing and able to buy
• The quantity of a good or service that businesses are willing and able to provide
• The price of a good or service that consumers are willing to pay
• The profit that businesses make from selling a good or service

How does price affect quantity supplied using a supply curve?

• As price increases, quantity supplied decreases
• As price increases, quantity supplied increases
• Price and quantity supplied are unrelated
• As price decreases, quantity supplied increases

What is the concept of demand and its relationship to consumer purchasing decisions?

• Demand is the quantity of products consumers are willing to buy
• Demand is the quantity of products available
• Demand is the price consumers are willing to pay
• Demand is the profit made by producers

How does price affect quantity demanded using a demand curve?

• As price decreases, quantity demanded increases
• As price increases, quantity demanded increases
• As price increases, quantity demanded decreases
• Price and quantity demanded are unrelated

What is the term for the quantity of a good or service that consumers are willing and able to buy?

• Demand
• Profit
• Supply
• Price

What role do producers play in a market economy?

• They determine the prices of products and services
• They determine the profit of businesses
• They determine the demand for products and services
• They determine the supply of products and services

What does a demand curve illustrate?

• The relationship between price and consumer preferences
• The relationship between price and quantity demanded
• The relationship between price and quantity supplied
• The relationship between price and profit

What is the relationship between supply and producer decisions?

• Supply determines the profit of businesses
• Supply determines the quantity of products producers are willing and able to provide
• Supply determines the prices of products producers are willing to sell
• Supply has no relationship to producer decisions

What does a supply curve illustrate?

• The relationship between price and profit
• The relationship between price and consumer preferences
• The relationship between price and quantity supplied
• The relationship between price and quantity demanded