Economic Systems & Supply and Demand

What happens to the price of a product when the demand for it increases?

• The price decreases

• The price stays the same

• The price fluctuates randomly

• The price increases

Which factor can cause a decrease in demand for a product?

• Increase in population

• Increase in income

• Increase in advertising

• Increase in the price of substitutes

When the supply of a product exceeds the demand for it, what happens to the price?

• The price increases

• The price decreases

• The price stays the same

• The price fluctuates randomly

Which factor can cause an increase in supply for a product?

• Increase in production costs

• Decrease in competition

• Decrease in government regulations

• Increase in technological advancements

What is the equilibrium price?

• The highest price a buyer is willing to pay

• The lowest price a seller is willing to accept

• The price where quantity demanded equals quantity supplied

• The price determined solely by the seller's preferences

What is a command economy?

• An economic system where supply and demand determine prices and allocation of resources.

• An economic system where the government controls all aspects of production and distribution.

• An economic system where individuals and businesses make their own economic decisions.

• An economic system that relies on customs, traditions, and beliefs to guide economic activity.

What is a market economy?

• An economic system where supply and demand determine prices and allocation of resources.

• An economic system where the government controls all aspects of production and distribution.

• An economic system where individuals and businesses make their own economic decisions.

• An economic system that relies on customs, traditions, and beliefs to guide economic activity.

What is a mixed economy?

• An economic system where supply and demand determine prices and allocation of resources.

• An economic system where the government controls all aspects of production and distribution.

• An economic system where individuals and businesses make their own economic decisions.

• An economic system that combines elements of both command and market economies.

What is a traditional economy?

• An economic system where supply and demand determine prices and allocation of resources.

• An economic system where the government controls all aspects of production and distribution.

• An economic system where individuals and businesses make their own economic decisions.

• An economic system that relies on customs, traditions, and beliefs to guide economic activity.

Which economic system is most commonly found in the real world?

• Command economy

• Market economy

• Mixed economy

• Traditional economy