Unit 4: Prices, Supply, & Demand TEST

A Playstation 5 can be obtained for $409.99.

• Price
• Theory of Price
• Law of Supply
• Law of Demand
• Elasticity

New skincare products gain a substantial amount of publicity online, causing the demand to increase. As a response to the increased demand, considering the limited supply, the price for the new skincare products increase.

• Theory of Price
• Price
• Law of Supply
• Law of Demand
• Elasticity

Once Apple raised the price for the newest Macbook model, they started producing more units. Apple wishes to sell more units at a higher price.

• Law of Supply
• Price
• Theory of Price
• Law of Demand
• Elasticity

As the price for school supplies decrease following the beginning of the school year, many teachers take advantage of the low prices and stock up for the year, causing an increase in demand.

• Law of Demand
• Price
• Theory of Price
• Law of Supply
• Elasticity

As consumers' incomes increase, so does their demand for luxury items, such as designer accessories. As their incomes decrease, so does the demand for the same luxury items.

• Elasticity
• Price
• Theory of Price
• Law of Supply
• Law of Demand

A local coffee shop has found $1.25 for a cup of coffee to be the price point at which the quantity supplied equals the quantity demanded.

• Equilibrium Price
• Price
• Theory of Price
• Law of Supply
• Law of Demand

The federal minimum wage is $7.25.

• Price Floor
• Price
• Theory of Price
• Law of Supply
• Law of Demand

Rent Control establishes a maximum amount per month landlords can charge for rent, limits how often rent can be increased, and limits by how much rent can be increased.

• Price Ceiling
• Price
• Theory of Price
• Law of Supply
• Law of Demand

Price

• D.
• A.
• B.
• C.
• E.

Quantity

• C.
• A.
• B.
• D.
• E.