Law of Supply and Demand

Supply, Demand, and Price

Open Ended

What could a government do to increase the demand for wind-produced energy?

Multiple Choice

Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?

• The demand will probably go up

• The demand will probably go down

Multiple Choice

The point where supply and demand are balanced

• shifters

• equilibrium

• surplus

• shortage

Multiple Choice

When the demand for a product or service is higher than the supply this causes what?

• shortage
• consumer
• surplus
• equilibrium

Multiple Choice

Farmers in California have had wonderful weather. They have produced the largest crop of strawberries in years. What will happen to the price of strawberries?

• The price will go up.

• The price will go down.

Multiple Choice

Which of the following could cause the demand for airline travel to decrease? 

• The price for traveling by airplane decreases
• The price of traveling by airplane remains the same
• The price for traveling by airplane increases
• None of the choices

Multiple Choice

Part of the reason that LeBron James earns millions of dollars each year while school teachers may earn $30,000 is because…

• consumers enjoy basketball to the point that they are willing to spend lots of money and time attending games and watching commercials.
• the supply of superstar basketball players is low, while the supply of competent teachers is much larger.
• demand for LeBron James' talents is very high since he can generate so much revenue for a firm.
• all of the choices

Multiple Choice

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

• it goes up

• it goes down

• it stays the same

• it is not effected

Multiple Choice

If the price of printers goes down, what happens in the market for ink cartridges?

• Supply increases.

• Supply decreases.

• Demand increases.

• Demand decreases