Supply and Demand and Markets Review

When Microsoft released windows office it worked better than other apple office software. What happened to the demand for apple software?

• The demand for Apple software remained the same.
• The demand for Apple software fluctuated unpredictably.
• The demand for Apple software decreased.
• The demand for Apple software increased.

What happens to wages in the workforce when there is an influx (increase) in the number of workers.

• Wages tend to decrease due to increased competition among workers.
• Wages remain unchanged regardless of worker numbers.
• Wages fluctuate randomly without any relation to worker influx.
• Wages increase due to higher demand for labor.

When Tyco released Tickle Me Elmo the demand skyrocketed. What happened to the price of Tickle Me Elmo?

• The price of Tickle Me Elmo increased.
• The price of Tickle Me Elmo decreased.
• The price of Tickle Me Elmo remained the same.
• The price of Tickle Me Elmo was unaffected by demand.

What combination of Supply and Demand will lead to the highest market price?

• Low demand and high supply
• Moderate demand and moderate supply
• High demand and high supply
• High demand and low supply

How is the Market price determined for a product?

• The market price is determined by the interaction of supply and demand.
• The market price is fixed and does not change over time.
• The market price is determined solely by production costs.
• The market price is set by government regulations.

A decrease in taxes will have what impact on supply?

• A decrease in supply.
• An increase in supply.
• No impact on supply.
• An increase in demand.

What will happen if the quantity demanded of a product is greater then the quantity suppied of a product?

• Prices will decrease due to excess supply.
• The product will be overproduced, causing a surplus.
• A shortage occurs, leading to increased prices.
• Demand will remain unchanged regardless of supply.

What can the Government do to make sure businesses don't price gouge consumers after a Hurricane?

• Implement price ceiling.

• Encourage businesses to raise prices to cover costs.
• Provide tax breaks for businesses after a disaster.
• Promote competition among businesses to lower prices.

People will buy Pepsi or Coke depending on which is cheaper. The means that Pepsi and Coke are _____________ of each other

• alternatives
• complements
• competitors
• substitutes

A town only has 2 grocery stores and now a new one is opening. What impact will this have on the community?

• Decreased competition, higher prices, fewer job opportunities, and less product variety.
• The existing stores will close down due to lack of customers.
• The new store will only sell organic products, limiting choices for consumers.
• Increased competition, lower prices, more job opportunities, and greater product variety.