How Prices Are Set Quiz

When there isn’t enough of a product to go around, it is called _______.

A cheap price always means good value.

Which of the following is a producer?

• A person watching a concert

• A person who buys a phone

• A person designing and selling a t-shirt

• A person eating at a restaurant

After checking demand and scarcity, it’s a good idea to look at the _______ of similar items.

Scarcity often leads to higher prices.

What does supply refer to?

• The amount available for sale

• The number of buyers

• The money made from sales

• The number of stores in a city

A well-made product sold at a fair price is said to have good _______.

Why is it helpful to check the prices of similar products?

• To copy other sellers exactly

• To choose the highest price

• To find a fair and competitive price

• To avoid having any competition

Consumers are people who buy goods and services.

What happens when demand is high but supply is low?

• Prices go down

• Prices stay the same

• Prices go up

• The product becomes free