CE.12b Supply and Demand Review

Corn crops die because of a drought in the Midwest states. The supply of corn decreases. What will happen to the price of corn?

• The price will increase

• The price will decrease

The factories for several leading producers of peanut butter were closed down after bacteria was found in the peanuts. The supply of peanut butter is now very limited. What will happen to the price of peanut butter?

• The price will increase

• The price will decrease

Tennis is becoming a very popular sport. Demand for tennis rackets and clothing increases. What happens to the price of tennis equipment?

• The price increases

• The price decreases

A donut shop makes a mistake and produces twice as many donuts as usual. What will happen to the price of their donuts?

• The price will increase

• The price will decrease

A hurricane destroyed the orange groves in Florida. What happened to the price of oranges?

• The price increases

• The price decreases

In September, the weather turns cooler, and the demand for shorts decreases. What happens to the price of summer clothes in the winter?

• The price increases

• The price decreases

Most people go to the beach during the summer. What happens to the price of hotel rooms and condos during the summer?

• The price increases

• The price decreases

The amount of goods and services that producers are able to sell is called the ______ .

• Supply
• Demand

The amount of goods and services that consumers want to buy is called the ______.

• Supply
• Demand

The "magic" price where supply meets demand. At this price, everyone who wants to buy or sell can do so. This price is called _______.

• Opportunity Cost

• Profit
• Equillibrium Price