Supply & Demand- Entrepreneurship

What happens when the demand for a product increases but the supply remains the same?

• The price increases

• The price decreases

• The supply increases

• • The demand decreases

When the supply of a product is higher than the demand, what typically happens to the price?

• It stays the same

• It increases

• It decreases

• It doubles

What is the law of demand?

• When supply increases, demand decreases

• When prices decrease, demand increases

• When prices increase, demand increases

• Demand is always constant

Which factor is least likely to affect the demand for a product?

• Consumer income

• Product price

• Weather conditions

• Government policies

When a new technology makes it cheaper to produce a product, what will likely happen to the supply curve?

• Shift to the right

• Shift to the left

• Stay the same

• Disappear

If the price of a substitute good increases, the demand for the original good will decrease.

• True

• False

A surplus occurs when the supply of a product is lower than the demand.

• True

• False

Elastic demand means a small change in price has a big effect on how much people buy.

• True

• False

In a free market, both supply and demand decide the prices.

• True

• False

Entrepreneurs have no control over supply and demand.

• True

• False