Supply and Demand Fall 24

As prices rise, sellers will offer more goods and services for sale.

• Supply
• Law of Supply
• Change in supply
• demand

A shortage of a good is often a signal for a producer to

• lower the production of that good
• lower the prices of thay good
• raise the prices of that good
• shift production to another good

If the demand curve shifts to the right, then the supply curve move up and to the right

• true
• False

An increase in price of jelly causes a decrease in demand of peanut butter. The products are

• complements
• demand elastic
• unrelated
• subtitutes

An increase in the price of a product will reduce the amount of it purchased because:

• the higher price means that real incomes have risen.
• supply curves are upsloping.
  
• consumers substitute relatively high-priced for relatively low-priced products.
• consumers will substitute other products for the one whose price has risen.

Are these substitutes or complements?

• Substitutes (buy instead of)

• Complements (buy together)

Are these substitutes or complements?

• Substitutes (buy instead of)

• Complements (buy together)

If there is a huge demand for an item and the supply is very low, what will happen to the price?

• The price will decrease

• The price will increase

• The price will stay the same.

• They will be free.

What is the Equilibrium Price?

• 1

• 2

• 3

• 4

The law of supply states that if the price of CD’s rise, suppliers will

• Supply more CDs

• Supply fewer CDs

• Quantity supplied will not change