Chapter 3 Review

Front

This part of the market determines DEMAND: buyers, sellers, suppliers, store owners

Back

buyers

Front

This part of the market determines SUPPLY

Back

producers

Front

For the law of demand, as price rises, what happens to quantity demanded?

Back

it goes down

Front

For the law of supply, as price rises, what happens to quantity supplied?

Back

it goes up

Front

When quantity supplied and quantity demanded is equal

Back

equilibrium

Front

If a price is above equilibrium price, (meaning price is above quantity demanded), it creates a...

Back

surplus

Front

If a price is below the equilibrium price, (meaning prices are lower than quantity demanded), it creates a...

Back

shortage

Front

What does this curve represent? Options: demand, supply, equilibrium, shortage

Back

supply

Front

This graph represents...?

Back

Changes in demand

Front

This graph represents...?

Back

Changes in supply