Exploring Supply and Demand Concepts

The video tutorial explains the concepts of supply and demand in a market economy. It defines supply as the amount of goods or services producers offer at a given price, and demand as the amount buyers are willing to purchase. The tutorial illustrates the demand curve, showing how price affects the quantity demanded, and the supply curve, showing how price affects the quantity supplied. It discusses the law of demand and supply, and how they interact to reach market equilibrium. The video also covers the effects of shortages and surpluses on prices.

What is the definition of supply in a market economy?

• The amount of goods or services that producers make available for sale at a given price.

• The total number of goods available in the market.

• The exchange process between sellers and buyers.

• The amount of goods or services that buyers will purchase at a given price.

If three farmers sell identical apples at different prices, which farmer are buyers most likely to purchase from?

• The farmer selling apples for $1.25.

• The farmer selling apples for $1.75.

• The farmer selling apples for $3.00.

• The farmer selling apples for $2.25.

What does the demand curve illustrate?

• The relationship between price and the quantity demanded.

• The total number of apples sold in the market.

• The profit margins of different farmers.

• The relationship between price and the quantity supplied.

According to the law of demand, what happens when prices increase?

• Demand goes up.

• Supply goes down.

• Demand goes down.

• Supply goes up.

What is the law of demand?

• As prices increase, supply decreases.

• As prices increase, demand decreases.

• As prices decrease, demand decreases.

• As prices decrease, supply increases.

What is the relationship between price and the quantity supplied called?

• Equilibrium

• Law of supply

• Market exchange

• Law of demand

If the price of apples is $3, how many apples will farmers supply?

• 45 apples

• 90 apples

• 20 apples

• 70 apples

What happens to supply if prices increase?

• Supply remains the same.

• Supply decreases.

• Supply fluctuates.

• Supply increases.

What is equilibrium in a market?

• When the amount supplied equals the amount demanded.

• When demand exceeds supply.

• When prices are at their highest.

• When supply exceeds demand.

What is a surplus in the market?

• When prices are too low.

• When supply is greater than demand.

• When prices are too high.

• When demand is greater than supply.