LA History Ch. 25 Review

What is the term for how much people want something?

• Demand

• Supply

• Price

• Quality

What is the term for the amount of money something costs?

• Price

• Quality

• Surplus

• Barter

What is the term for when people try to get the same thing?

• Competition

• Surplus

• Barter

• Supply

What happens to prices if demand is greater than supply?

• Producers increase prices

• Producers decrease prices

• Prices stay the same

• Stores close down

Why do producers increase prices when demand is greater than supply?

• To earn more by selling items for a higher price

• To make people happy

• To give away free items

• To reduce the number of stores

What happens if supply is greater than demand?

• Producers increase prices

• Producers decrease prices

• Stores close

• People stop buying

What happens to the price of sand buckets when demand is high?

• The price increases

• The price decreases

• The price stays the same

• Buckets are free

What does the word "supply" mean in economics?

• How much of a product is available

• How much people want a product

• How much a product costs

• How many stores there are

If demand is high and supply is low, what happens to prices?

• Prices increase

• Prices decrease

• Prices stay the same

• Stores close

What is the relationship between supply, demand, and price?

• Supply and demand interact to determine price

• Price is always the same

• Supply and demand do not affect price

• Price is set by the government