Exploring the Basics of Supply and Demand

Lula from the IMF shares her love for blueberries to explain economic concepts. She discusses the law of demand, where lower prices increase consumer demand, and the law of supply, where higher prices encourage sellers to supply more. The equilibrium price is where these two meet. She further explains how external factors like health reports or weather can shift demand and supply curves, affecting market prices.

What is the speaker's favorite fruit?

• Blueberries

• Oranges

• Apples

• Bananas

What economic principle explains why people buy more blueberries at lower prices?

• Supply and demand curve intersection

• Law of supply

• Law of demand

• Equilibrium price

According to the law of demand, what happens when the price of blueberries decreases?

• Supply increases

• Demand decreases

• Demand increases

• Demand remains the same

What does a farmer want to do when the price of blueberries increases?

• Buy more

• Decrease demand

• Supply less

• Supply more

What determines the market price of blueberries?

• Supply curve only

• Government regulations

• Demand curve only

• Intersection of demand and supply curves

What happens to the demand curve when blueberries are found to be healthier than previously thought?

• Shifts to the right

• Remains unchanged

• Shifts to the left

• Becomes vertical

How does bad weather affecting the blueberry crop influence the supply curve?

• Shifts to the left

• Becomes horizontal

• No effect

• Shifts to the right

What is the result of an increase in the equilibrium price of blueberries?

• More people buy blueberries

• The demand for blueberries decreases

• Farmers decrease blueberry production

• Only wealthier individuals purchase blueberries

What alternative do people turn to when blueberries become too expensive?

• Raspberries

• Grapes

• Cherries

• Strawberries