Supply and Demand Review

Front

If supply increases then price

Back

decreases

Front

If demand increases then price

Back

increases

Front

If supply decreases then price

Back

increases

Front

If demand decreases then price

Back

decreases

Front

If demand decreases while supply increases, what happens to prices?

Back

decrease

Front

If demand increases while supply decreases, prices will:

• decrease
• increase
• stay the same
• can't tell without more info

Back

increase

Front

The news has just reported that people have been poisoned after buying Tylenol bottles that had been tampered with. What will happen to demand?

Back

decrease

Front

What factor is going to cause a change in demand for Tylenol after reports of tampering? Options: price change, expectation of buyers, population, quotas.

Back

expectation of buyers

Front

A storm blew a large cargo ship off course blocking the Suez Canal. Other ships had to reroute around Africa. What happened to the supply of goods going to Europe?

Back

decrease

Front

What factor is affecting the supply of goods to Europe due to a storm blocking the Suez Canal?

Back

weather (acts of God)