Demand and Supply Quiz

Demand is defined as the different quantities or amounts of a resource, good, or service that consumers are ___________ to buy at various prices during a specific time period.

The law of demand states that when the price of a good increases, the quantity of that good that people are willing and able to buy decreases.

• True

• False

When the price of a haircut is $60.00, the quantity demanded of haircuts is:

• 4

• 13

• 21

• 39

As the price of a haircut __________, the quantity demanded of haircuts __________.

The headline below appears in social media and newspapers around the country. Viral Tik Tok Challenge Has People Making Jewelry From Skittles Candy What is the effect of this new fad on the demand for Skittles candy?

• There is an increase in the demand for Skittles.

• There is a decrease in the demand for Skittles.

• There is no change in the demand for Skittles.

• There is an increase in the supply of Skittles.

What type of resource occurs commonly in and on the earth and is used to produce goods and services?

• Human capital

• Capital resources

• Natural resources

• Intermediate goods

Cost of production is:

• The amount producers pay for a good or service.

• The amount consumers pay for a good or service.

• The amount producers pay for the productive resources and intermediate goods used to produce a product.

• The amount consumers pay for the productive resources and intermediate goods used to produce a product.

The price of cheddar cheese used to make frozen macaroni and cheese increases. What is the effect of this change in cost of production on the supply of macaroni and cheese?

• There is an increase in the demand for macaroni and cheese.

• There is an increase in the supply of macaroni and cheese.

• There is a decrease in the supply of macaroni and cheese.

• There is no change in the supply of macaroni and cheese.

Competition takes place when there are many buyers and sellers of a product.

• True

• False

A market is where _______ and _______ come together to exchange goods, services, and/or resources.