Supply & Demand

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up

• it stays the same

• it goes down

• it fluctuates wildly

For the law of supply, as price rises, what happens to quantity supplied?

• it goes down

• it stays the same

• it goes up

• it fluctuates unpredictably

When quantity supplied and quantity demanded is equal

• equilibrium

• surplus

• shortage

• disequilibrium

When the gov't pays money to businesses, usually to encourage them to produce a certain product..

• grants

• tax breaks

• subsidies

• loans

If only the price for a good or service changes, does the demand curve shift? Why or why not?

• Yes, because price changes always shift the demand curve.

• No, because price does not shift the curve. Price stays on the line.

• Yes, because demand is affected by price changes.

• No, because the demand curve only shifts with changes in consumer preferences.

What does this curve represent?

• demand

• supply

• equilibrium

• shortage

What does this curve represent? Options: supply, equilibrium, demand, surplus

• supply

• equilibrium

• demand

• surplus

Which of the following defines "Complementary Goods?"

• Goods that are commonly used with other goods

• Goods that can replace each other

• Goods that are sold at a discount

• Goods that are produced in the same industry

Supply is how much a producer (a business) is able and willing to make for sale to consumers.

• The total amount of goods available in the market.

• The quantity of goods that consumers are willing to buy.

• How much a producer (a business) is able and willing to make for sale to consumers.

• The price at which goods are sold in the market.

New technology advances the rate at which furniture can be assembled. Why does this change the supply?

• Change in cost of production

• Increase in demand for furniture

• Reduction in labor costs

• Improvement in furniture design