Supply/Demand concepts Video makeup

What are the two main factors that determine the price of goods and services?

• A. Demand and availability

• B. Supply and demand

• C. Demand and quality

• D. Supply and quality

Which of the following is considered a service?

• Houses

• Oranges

• Books

• Car washing

What does 'supply' refer to in the context of economics?

• A. The amount of money available

• B. The amount of a good or service that exists

• C. The number of consumers

• D. The quality of a product

What happens to the quantity demanded when a product becomes more expensive?

• A. It increases

• B. It decreases

• C. It fluctuates

• D. It stays the same

Why might companies increase production of a product?

• To reduce costs

• To meet higher demand

• To decrease prices

• To improve quality

What is the term for the amount of a product that producers are willing to sell at a particular price?

• A. Market supply

• B. Market demand

• Quantity Demanded

• Quantity Supplied

What drives producers to push prices up?

• Desire to reduce supply

• Desire to increase demand

• Desire to make money

• Desire to save money

What is the equilibrium point in a market?

• Quantity demanded

• Quantity supplied

• Quantity demanded equals quantity supplied

• None of the above

What happens when the demand for a product becomes greater than the supply?

• A) Supply decreases

• B) Prices increase

• C) Prices decrease

• D) Demand decreases

What is the result when the supply and demand balance out in a market?

• A. Prices become unstable

• B. The market has cleared

• C. Supply exceeds demand

• D. The market crashes