Supply and Demand

Where does everything around you come from?

• Markets

• Amazon

• Target

• The sky

• The ground

Who has to agree to make a voluntary transaction?

• Buyers and Sellers

• Buyers and Markets

• Sellers and Markets

Competitive markets turn out to be pretty great about allocating or distributing our scarce resources towards their most efficient use.

• True

• False

• Neither true nor false

The information that markets generate to guide a distribution of resources is called what?  

• Price Signals

• Supply Signals

• Demand Signals

• Market Signals

What do supply and demand tell us?

• What the price of a product should be

• What the price signal is telling us

• What the use of the product will be

• What the market will sell the price at

Where does the quantity supplied equal the quantity demanded?

• Equilibrium Price

• Shortage

• Surplus   

Which of the following things can happen in a market?

• Supply can increase

• Supply can decrease

• Demand can increase

• Demand can decrease

• There can be two equilibrium points

What causes the price of gasoline to change?

• Supply and Demand

• The President

• The Legislative Branch

• The Economy

• The Stock Market

Why is the supply of human organs for donation so low?

• People use their organs and not all people are organ donors

• Healthcare provides organs for everyone who needs one

• The market decides the price of human organs and keeps it at a manageable price

• The market for human organ donation is completely regulated so that everyone who needs one gets one

What is the interaction between supply and demand called?

• Laws

• Human Choices

• Consequences

• Markets