Economics 9

What is supply?

• The amount of money needed to buy products

• How much of a good or service a company can provide

• The desire to purchase goods and services

• The number of companies producing a certain good

What is demand?

• The quantity of a product available for sale

• The number of products a company can make

• How much of that good or service people want to buy

• The cost to produce goods and services

What would happen if the price of a pizza doubled?

• More people would order them

• Demand would increase and supply would remain the same

• Less people would order them, and demand would drop

• Pizza places would increase the price even more

What might pizza places do if they have too many leftover pizzas?

• Increase the price to improve profits

• Keep the price the same and wait

• Lower the price to get some customers back

• Stop making pizzas altogether

What is the effect of lowering the price on supply and demand?

• It decreases demand and increases supply

• It increases demand and has no effect on supply

• It increases demand and lowers supply

• It has no effect on either demand or supply