Study Hall: The Game of Supply & Demand

When ​ (a)   in the marketplace change the ​ (b)   of goods and services ​ (c)   with them.

• conditions
• prices
• change
• rules
• laws

Everyone who purchases any goods or services - whether it’s a huge purchase like a car, a house, or just a pack of gum at the gas station, the way we spend our money makes every single one of us part of the _____ group.

• investor
• government

• supply

• demand

In economics, "_______" is the unavoidable fact that we’ll never have all the money, time, or stuff, us demanders have to prioritize our wants and needs.

• equity
• surplus
• abundance
• scarcity

The Law of Demand

It’s a pretty fundamental  assumption in economics - as price increases, quantity demanded goes ​ (a)   , and, inversely (the opposite way), when price dips/drops, demand ​ (b)   .

• down
• rises
• remains constant

One thing that can really affect quantity demanded is actually the ​ (a)   of other kinds of ​ (b)   in the market - also known as alternatives, complements or substitutes.

• availability
• goods
• scarcity
• economics

______ for the future can also change how much or how little consumers demand. If people think the prices of cars will increase - they will be more likely to go buy a car now.

• Demand

• Banks

• Expectations

Trends and preferences can influence the demand  curve, too. When social media influencers began raving about the Stanley Tumbler and its features - what happened to demand?

• It remained unchanged.

• Demand decreased.

• Demand increased.

• Demand fluctuated wildly (went up and down randomly).

_______ are the people and firms that produce and sell goods and services.

• Consumers
• Representatives

• Distributors
• Suppliers

Suppliers are still motivated by that central economic idea of scarcity– that with limited resources, they’d better allocate wisely.

For firms, that means maximizing the money they get to pocket after covering the costs of whatever they’re producing, known as _____.

• profit
• cost
• revenue
• investment

Law of Supply

All other factors being equal, an increase in the price of a good will lead to an ​ (a)    in the quantity supplied.

The reverse is true too; as market price falls, firms will likely respond by supplying ​ (b)   goods. That’s because the lower the price of a good, the less ​ (c)   firms reel in.

• increase
• fewer
• profit
• customers
• decrease