Demand, Supply, and Equilibrium

It states that as the price increases, the quantity demanded decreases.

• Demand

• Law of Demand

• Supply

• Law of Supply

What does graph of Supply Curve represent?

• Increases

• Decreases

• Remain the same

• None of the Above

The condition when quantity demanded is equal to quantity supplied.

• Demand

• Supply

• Market Equilibrium

• Law of Supply and Demand

What does this curve represent?

• Supply

• Demand

• Equilibrium

• Surplus

As prices rise, sellers will offer more goods and services for sale.

• Supply

• Demand

• Change in supply

• Law of Supply

The Supply Curve is upward-sloping because...

• As the price increases, so do costs

• As the price increases, consumers demand less.

• As price increases, suppliers can earn higher profits or justify higher marginal costs to produce more.

• None of the above

A shortage of a good is often a signal for a producer to

• lower the production of that good

• raise the prices of that good

• lower the prices of that good

• shift production to another good

If a market is at equilibrium and if there is a sudden increase in demand, you have a

• Shortage

• Surplus

• Stay the same

• None of the above

In a market economy, who decides on the price of goods and services?

• Government

• Firm

• Buyers and Sellers

• Leaders

Consumers buy more of something when it costs less:

• Law of Supply

• Law of Demand

• Law of Purchase

• Law of Trade