Chapter 20: Supply, Demand, and Competition

What is the definition of 'market'?

• the amount of money expected, required, or given in payment for something

• any place where buyers and sellers interact

• how much of something people are willing and able to buy

• how much of something producers are willing and able to sell

What is the definition of 'price'?

• the amount of money expected, required, or given in payment for something

• any place where buyers and sellers interact

• how much of something people are willing and able to buy

• how much of something producers are willing and able to sell

Supply is how much of something producers are willing and able to sell. For example, if there are 100 apples available in the grocery store, the supply of apples in that store is _____?

• 100

• 10

• 50

• 200

Demand is how much of something people are willing and able to buy. For example, if people in the grocery store want to buy 80 apples, the demand for apples in that store is _____?

• 80

• 8

• 180

• 18

For the following scenario, determine the quantities of supply and demand: A food stand at a baseball game cooked 150 hot dogs for Saturday's game. On Saturday, the stand received 180 hot dog orders, but only had 150 to sell.

• Supply: 150, Demand: 180

• Supply: 180, Demand: 150

• Supply: 150, Demand: 150

• Supply: 180, Demand: 180

For the following scenario, determine the quantities of supply and demand: Sarah makes custom birthday cakes. Last year she had requests for 92 cakes, but she was only able to make 74 cakes.

How Do Supply and Demand Help Determine Price?

• price

• location

• color

• weight

What occurs in a market when the supply is greater than the demand?

• A shortage occurs

• A surplus occurs

• The price increases

• The demand increases

What occurs in a market when the demand is greater than the supply?

• A surplus occurs

• A shortage occurs

• The market is in equilibrium

• Prices decrease

Rubber is priced at 85 cents per pound. What happens if many people stop buying rubber because a report claims rubber products damage the environment? The ________________ rubber will be greater than the ________________ rubber. As a result, rubber producers will ________________ the price of rubber.

• supply of; demand for; decrease

• demand for; supply of; increase

• demand for; supply of; decrease

• supply of; demand for; increase