EPF.E.1.3 Supply & Demand

Front

Supply and demand determine equilibrium price and quantity. Which of the following best explains this concept? Options: The government sets the equilibrium price and quantity., Equilibrium is reached when supply equals demand., Producers decide the equilibrium price and quantity., Consumers have no effect on equilibrium.

Back

Equilibrium is reached when supply equals demand.

Front

What does the Law of Demand state?

Back

Lower the price, the more willing to buy.

Front

Diminishing Marginal Utility refers to the concept that as a person consumes more of a product, the satisfaction gained from consuming each additional unit decreases.

Back

The satisfaction decreases with each additional unit consumed.

Front

Which of the following are determinants of demand? Price of the good, Consumer income, Tastes and preferences, All of the above

Back

All of the above

Front

Based on the graph showing an increase in demand, what happens to the equilibrium price when demand increases from D1 to D2?

Back

It increases from P1 to P2.

Front

Based on the graph showing a decrease in demand, what happens to the equilibrium price and quantity when demand decreases from D1 to D2?

Back

Price decreases, Quantity decreases

Front

The Law of Supply states that:

Back

As the price of a good increases, the quantity supplied increases.

Front

Which of the following is a determinant of supply? Cost of labor, Consumer preferences, Weather conditions, Brand reputation

Back

Cost of labor

Front

What does the graph titled 'Showing Increase in Supply' illustrate?

Back

An increase in supply

Front

What does the graph illustrate about the supply curve?

Back

Decrease in supply