Supply & Demand

In economics, what does "supply" primarily refer to?

• The quantity of a product consumers are willing to buy.

• The quantity of a product or service that producers can provide to the market at different prices.

• The total amount of money available in the market.

• The popularity of a product among consumers.

What is "demand" in the context of economics?

• The amount of a product a company has in stock.

• The quantity of a product or service that consumers are willing or able to buy at different prices.

• The cost of producing a good or service.

• The number of producers in a market.

What economic situation occurs when the supply of a product is high at a specific price, but the demand for it is low?

• A shortage

• Market equilibrium

• A surplus

• Increased prices

What can producers do to sell their products when there is a market surplus?

• Increase the product's price.

• Complain to the Federal Government.

• Wait and hope for the best.

• Reduce the product's price.

What is the term for an economic situation where the supply of a product is low at a specific price, but the demand for it is high?

• A surplus

• Market saturation

• A shortage

• Decreased prices

What do people tend to do when there is a product shortage?

• They protest on the streets.

• They are willing to pay more for the product.

• They complain to the Federal Government.

• Nothing, product shortages never happen in America.

Scarcity: the fundamental economic problem where limited _(A)_ cannot satisfy unlimited human _(B)_.

• (A) resources, (B) power

• (A) intelligence, (B) ignorance

• (A) surplus, (B) shortage

• (A) resources, (B) wants

What is the "invisible hand" in economics?

• A metaphor for the unseen hand of the Federal Government.

• A metaphor for the unseen hand of the Deep State.

• A metaphor for the unseen forces that move the free market economy.

• A metaphor for the unseen hand of international cartels.

How can government mandates cause an artificial surplus?

• Government mandates can create an artificial surplus by imposing price controls or production limits that lead to excess supply.
• Government mandates can eliminate surplus by raising demand through subsidies.
• Government mandates can reduce supply by increasing production costs.
• Government mandates can stabilize prices by enforcing minimum wage laws.

What are the 3 actions you should take according to the video?

• Consider what opportunities exist around you to meet current or future demand.

• Don't take responsibility for your shopping habits.

• Be smart when shopping.

• Observe how prices change overtime.