SOL Daily Review Quiz - 3/10/25

What is the law of demand?

• Producers will make more goods at higher prices

• When prices go up, supply increases

• Consumers will buy more at higher prices

• Consumers will buy more at lower prices and less at higher prices

What determines prices in a market economy?

• Only supply determines prices

• Only demand determines prices

• Both supply and demand together determine prices

• The government sets all prices

What is equilibrium price?

• The highest price sellers want to charge

• The point where supply and demand meet

• The lowest price buyers want to pay

• The average of all market prices

According to the law of supply, what happens when prices increase?

• Consumers buy more products

• Producers make less products

• Producers make more products

• The market always stays the same

Which statement about demand is correct?

• It only applies to luxury items

• It measures how much producers can make

• It represents what consumers are willing and able to buy at different prices

• It stays constant regardless of price changes

What happens at the equilibrium price?

• Sellers are forced to lower their prices

• Buyers must wait to purchase goods

• There are always shortages

• Everyone who wants to buy or sell at that price can do so

How do lower prices affect producers?

• They provide incentives to produce more

• They provide incentives to produce less

• They have no effect on production

• They always increase profits

What is price in economic terms?

• The amount of money exchanged for a good or service

• The cost of production only

• Whatever sellers decide to charge

• Whatever buyers want to pay

How do buyers respond to higher prices?

• They always buy the same amount

• They typically buy more of the product

• They typically buy less of the product

• They stop buying completely

What is supply in economic terms?

• The total amount of goods in stores

• The amount producers are willing and able to sell at different prices

• The number of consumers in the market

• The government's product regulations