Supply and Demand

When the price of a good increases the quantity demanded ____.

• a. decreases

• b. increases

• c. stays the same

Along a supply curve, if the price of oil falls, what will happen to the quantity of oil supplied?

• it will decrease

• it will increase

• it will not change

If the price of cars falls, are carmakers likely to make ___________.

• more cars

• fewer cars

• the same amount of cars

If the price in a market is above the equilibrium price, this creates ___________.

• a shortage (not enough goods to be sold)

• a surplus (more than can be sold)

• neither a shortage nor a surplus

When the price is above the equilibrium price, greed (in other words, self-interest) tends to _________.

• push the price down

• push the price up

• have no effect on price

In general, if the price of a good or service goes down, what happens to the demand for that good or service?

• demand goes up
• demand stays the same
• demand goes down
• none of the above

In general, if the price of a good or service goes up, what happens to the demand for that good or service?

• demand goes up
• demand stays the same
• demand goes down
• none of the above

Millions of people see a famous sports star drinking apple juice on television. The fans think apple juice helps make the athlete strong. What will happen to the price of apple juice?

• The price will go up.
• The price will go down.

The amount of goods or services available is called?

• supply
• demand
• producer
• consumer

A market is said to be in equilibrium when

• when demand is higher than the supply

• when demand is lower than the supply

• when the demand and supply quantities are equal

• when the supply is doubled the demand