MM3 QUIZ ON DEMAND AND SUPPLY

What is demand?

• Willingness to buy a specific good and services for a given price

• Willingness to sell a specific good and services for a given price

• An increase in the price, a decrease in the quantity demanded

• An increase in the price causes an increase in the quantity demanded.

What is supply?

• Willingness to buy a specific good and services for a given price

• Willingness to sell a specific good and services for a given price

• An increase in the price, a decrease in the quantity supplied

• An increase in the price causes an increase in the quantity supplied

What is the law of demand?

• An increase price causes an increase quantity demanded.

• An increase in the price, a decrease in the quantity supplied

• An increase in the price, a decrease in the quantity demanded

• An increase in the price causes an increase in the quantity supplied.

What is the law of supply?

• An increase in the price, a decrease in the quantity supplied

• An increase price causes an increase quantity demanded.

• An increase in the price, a decrease in the quantity demanded

• An increase in the price causes an increase in the quantity supplied

The Law of Supply states that as prices increase, supply does what?

• Increase

• Decrease

When the supply goes higher,the demand will be______

• Lower

• Higher

When the supply goes lower,the demand will be____

• Higher

• Lower

Many people buy present box before Christmas,the supply is low,the price will become ______

• Higher

• Lower

The farmer grows many crops and sell,the crops is higher than the demand,the price will be _______

• Higher

• Lower

What exists when quantity supplied is greater than quantity demanded?

• Surplus

• Shortage