Understanding Demand and Supply

What is one of the main factors that influence the price of goods and services?

• Cultural trends

• Weather conditions

• Demand and supply

• Government regulations

In the example of the milk seller, what happens when the milk is sold out?

• The seller reduces the price

• Customers go to a competitor

• The seller increases the price

• The seller stops selling milk

What is the relationship between price and supply according to the supply curve?

• Price and supply are unrelated

• As price increases, supply increases

• As price decreases, supply increases

• As price increases, supply decreases

What happens to demand when the price of a product is too high?

• Demand becomes unpredictable

• Demand decreases

• Demand remains constant

• Demand increases

What is the equilibrium point in the context of demand and supply?

• The point where supply exceeds demand

• The point where demand and supply are equal

• The point where demand exceeds supply

• The point where prices are highest