Supply and Demand Practice

Jacob Clifford provides a fast-paced review of supply and demand concepts, focusing on practical application rather than teaching the basics. The video covers the law of demand and supply, market equilibrium, and the effects of price changes on quantity demanded and supplied. It includes practice scenarios to test understanding, emphasizing the importance of graphing shifts and changes in equilibrium. The video is designed for students already familiar with the concepts, offering a quick refresher and practice opportunity.

What is the main focus of this video tutorial?

• Teaching new concepts of supply and demand

• Providing a detailed analysis of economic theories

• Reviewing and practicing supply and demand concepts

• Discussing the history of economics

What happens to the quantity demanded when the price of a product falls?

• It decreases

• It remains the same

• It increases

• It becomes zero

What is the relationship between price and quantity supplied according to the law of supply?

• No relationship

• Direct relationship

• Inverse relationship

• Random relationship

What is the effect on the market when the price is set below equilibrium?

• Shortage occurs

• Market remains stable

• Surplus occurs

• Demand curve shifts left

Which of the following does NOT cause a shift in the demand or supply curve?

• Change in the price of related goods

• Change in consumer preferences

• Change in the price of the product

• Change in income levels

What is the effect of a government subsidy on the supply curve?

• No effect on the supply curve

• Shifts the demand curve to the right

• Shifts the supply curve to the right

• Shifts the supply curve to the left

In a recession, what happens to the demand for normal goods?

• Demand becomes unpredictable

• Demand remains unchanged

• Demand decreases

• Demand increases

What happens to the demand for fidget spinners if a complementary product's price decreases?

• Demand increases

• Demand becomes zero

• Demand decreases

• Demand remains unchanged

In a double shift scenario where both demand and supply increase, what can be said about the price?

• Price will remain the same

• Price is indeterminate

• Price will definitely decrease

• Price will definitely increase

What is the result of a decrease in the price of a substitute good on the demand for the original product?

• Demand for the original product decreases

• Demand for the original product remains unchanged

• Demand for the original product becomes zero

• Demand for the original product increases