Quizizz--Economics (Module 2--Element 1.6)--Prices

What is the relationship between the price of a good and the quantity demanded called?

• Law of supply

• Law of demand

• Law of equilibrium

• Law of production

What does the law of supply describe?

• Negative relationship between price and quantity supplied

• Positive relationship between price and quantity supplied

• No relationship between price and quantity supplied

• Inverse relationship between price and quantity supplied

How does the demand curve typically slope?

• Upward to the right

• Downward to the right

• Horizontal

• Vertical

What does the supply curve indicate?

• Quantities consumers will purchase at alternative prices

• Quantities producers are willing to supply at alternative prices

• Fixed quantities regardless of price

• Maximum price producers will accept

What is the equilibrium price of ice cream in the example provided?

• $2

• $3

• $4

• $5

What happens when the price of ice cream is higher than the equilibrium price?

• Demand increases and supply decreases

• Supply exceeds demand, leading to excess inventory

• Demand and supply are equal

• Demand exceeds supply, leading to shortages

What is the effect of a price lower than the equilibrium price on the market?

• Excess supply and downward pressure on price

• Excess demand and upward pressure on price

• Equilibrium is maintained

• No effect on demand or supply

What role does price play in the market according to the text?

• It only affects consumers

• It coordinates the choices of consumers and producers

• It has no effect on supply and demand

• It only affects producers

What does the auction system on eBay illustrate?

• The operation of demand and supply

• The process of online marketing

• The concept of digital payments

• The role of social media in sales

What is a reserve price on eBay?

• The maximum price a buyer is willing to pay

• The minimum price a seller will accept

• The average price of similar items

• The price after a discount