Market Forces and Demand-Supply Quiz

Imagine you're running a fruit stand. You have delicious bananas, juicy apples, and crunchy carrots. One day, everyone wants apples! What happens to the price of apples, bananas, and carrots?

• The demand for apples goes up and the prices for bananas and carrots might decrease.

• The price of apples will not increase while the price for bananas and carrots might decrease.

• The price for bananas and apple would go up while the price for apples would stay the same.

• The price of bananas might increase while it lowers the demand for apples and carrots

What happens if there are too many phone cases and nobody wants them?

• The store might have to lower the price even more

• The store might offer discounts to get rid of them all.

• All of the above

• No answer

If there are barely any water left and everyone wants one?

• Its an oversupply

• The store can lower the price

• Its a shortage

• The store can maintain the price

What is market equilibrium?

• A state in which market supply is low and demand is high, resulting in low pricing

• A state in which market supply is high and demand is low, resulting in high pricing

• A state in which market supply and demand are imbalanced, resulting in fluctuating pricing

• A state in which market supply and demand are balanced, resulting in steady pricing

If you bake too many cookies and nobody wants them all, you have an oversupply.

• True

• False

If everyone wants your cookies but you don't have enough, you have a oversupply.

• TRUE

• FALSE

Imagine you are at a local farmer's market. You're excited to buy some fresh peaches, but you notice there are only a few baskets left, and the price is quite high.

• Market equilibrium

• Law of supply

• Demand curve

• Oversupply

In a market for apples, the price is currently $1 per apple. At this price, farmers are willing to supply 100 apples. However, consumers are only willing to buy 80 apples. What is the current state of the apple market?

• Market equilibrium

• Oversupply

• Shortage

• I don't know

In a healthy market, what happens when the price of a good increases?

• The quantity demanded for that good increases.

• The quantity supplied for that good decreases.

• Both the quantity demanded and supplied for that good decrease.

• Both the quantity demanded and supplied for that good increase.

What does a demand schedule show?

• The quantity of a good that producers are willing to supply at different prices.

• The difference between the price and the cost of production.

• The quantity of a good that consumers are willing to buy at different prices.

• The government's regulations on the market price of a good.