Supply and Demand

Which of the following scenarios is an example of a service being provided?

• Buying a book from an online store

• Enjoying a ride on a roller coaster at an amusement park

• Purchasing a new computer from a retail shop

• Hiring a babysitter for an evening

In a competitive market, what term is used to describe the price at which supply equals demand, ensuring that all goods are sold?

• Market Clearing Price

• Maximum Consumer Price

• Minimum Cost Price

• Market Consumer Price

During a holiday season, a popular toy's demand increases significantly. What is the likely impact on the toy's market?

• Price and supply rise

• Price and supply fall

• Price rises, supply falls

• Price falls, supply rises

Which of the following scenarios best illustrates an incentive for buyers in a real-world context?

• Receiving a discount on bulk purchases

• Saving money through a loyalty program

• Increasing production efficiency

• Expanding market reach through advertising

When a local grocery store reduces the prices of its fresh produce, what are they signaling to customers?

• To save their money

• To spend their money

• To wait for a sale

• To buy substitutes

As a business owner, what would be your primary motivation to increase production when the market prices of your products rise?

• Increased competition

• Higher production costs

• Increased profits

• Decreased demand

When shopping online, what is a common characteristic you might notice about "knockoff" products compared to genuine ones?

• Higher quality

• Lower quality

• Same quality

• Premium quality

In a city planning meeting, which factor is least likely to affect the demand for public transportation?

• Taste

• Preference

• Weather

• Availability of substitutes

How can placing hot fudge sauce next to ice cream in a store impact customer purchasing behavior?

• It might confuse customers

• It can increase sales by encouraging the purchase of complementary products

• It helps in making more space in the store

• It reduces the price of ice cream

If a new brand of chocolate bar is introduced and consumers find that older chocolate bars taste better, what is likely to happen in the market?

• Demand for the new chocolate bar will increase

• Demand for the new chocolate bar will fall

• Demand for both chocolate bars will remain the same

• Demand for the older chocolate bars will fall