Economics: Supply Review

The 'law of supply' suggests that

• price and quantity supplied are directly related

• price and quantity supplied are inversely related

• movements along the supply curve are caused by a price fall

• supply will expand until market equilibrium is reached

This part of the market determines SUPPLY

• buyers
• sellers
• consumers
• us

What is the Equilibrium Price?

• 1
• 2
• 3
• 4

Which of the following will cause an increase in demand for snowboards?

• More costly production methods 
• A decrease in the price of lift tickets at resorts in Colorado 
• A decrease in consumer income   
• A decrease in the population 

Point at which supply and demand come together

• price ceiling
• excess demand
• equilibrium
• disequilibrium

At equilibrium price:

• Quantity supplied = quantity demanded

• Price increases to soak up excess demand

• Price decreases to soak up excess supply

• Demand increases in response to the price of related goods

A supply curve slopes:

• Upward
• Downward
• Vertical
• Not at All

When the price is below the equilibrium price, more people are willing to buy alot of the product.

• false
• true

My candy show has a very low supply of chocolate. What should I do to the price of the chocolate to build up a bigger supply?

• Lower the price

• Raise the price

• Keep the price the same

• Throw the chocolate out

Where are snow shovels probably the least expensive (Based on what you know about how demand impacts price)?

• Colorado

• Alaska

• Florida

• Minnesota (it snows a lot there)