ML FBLA Exploring Economics - Supply and Demand

What is the law of demand?

• As price decreases, demand increases

• As price increases, demand increases

• As price stays the same, demand stays the same

• As price decreases, supply increases

What is the law of supply?

• As price increases, supply decreases

• As price decreases, supply decreases

• As price increases, supply increases

• As price stays the same, supply stays the same

What happens when there is a high demand for a product and the supply is low?

• Prices tend to decrease

• Prices tend to stay the same

• Prices tend to increase

• Prices become unpredictable

Which of the following is an example of a product that would have high demand when the price is low?

• Gasoline

• Electronics

• Candy

• Designer clothes

When supply increases, what typically happens to the price of a good?

• The price rises

• The price stays the same

• The price decreases

• The price becomes unpredictable

What is a market equilibrium?

• When supply is greater than demand

• When demand is greater than supply

• When supply and demand are equal

• When prices keep rising

What is the term for the point where supply and demand curves intersect?

• Price ceiling

• Equilibrium price

• Shortage

• Surplus

What is a surplus in a market?

• When demand exceeds supply

• When supply exceeds demand

• When supply equals demand

• When prices are too high

What is a shortage in a market?

• When demand exceeds supply

• When supply exceeds demand

• When supply equals demand

• When prices are too low

If the price of a product increases and demand decreases, this is an example of which law?

• The law of supply

• The law of demand

• The law of supply and demand

• The law of equilibrium