Supply & Demand LAP

Your DECA chapter purchased 7-dozen donuts to sell at school on Tuesday.  Six-dozen were sold. What do the six-dozen donuts represent?

• Demand
• Supply
• Surplus
• Capital

Jeremy has $15,000 to spend on a new car.  He found a car that was priced at $14,500, but he did not think the car was worth more than $12,000.  The dealer told Jeremy that he has not been able to sell this model because other customers have expressed the same opinion as Jeremy.  Does demand of this car exist?

• Yes, bc consumers like the car but don't buy it.
• Yes, bc consumers think the car is worth $12,000.
• No, bc consumers do not have the buying power to purchase this car.
• No, bc consumers are not willing to pay the price being asked for this car.

When the price of a good or service is high consumer demand will usually be

• high
• unpredictable
• low
• average

The quantity of a good or service that producers are able and willing to offer for sale at a specified price in a given period of time is

• supply.
• quantity sold.
• demand.
• quantity demanded.

When the price of an iPod increases, the quantity of iPods offered for sale will increase.  This is an example of the law of

• standardization.
• cost of production.
• demand.
• supply.

Which of the following is characteristic of a seller's market:

• Low profits
• Small demand
• High prices
• Large supply

Your business is selling a larger number of flat-screen TVs each month.  Applying the law of supply and demand, what do you expect to happen to the price and supply of these TVs over the next few months?

• The price will increase, and supply will increase
• The price will decrease, and supply will decrease
• The price will increase, and supply will decrease
• The price will decrease, and supply will increase

A local neighborhood has many houses for sale at a low price, but demand for the houses is low.  What kind of market most likely exists in the neighborhood?

• Buyer's
• Seller's
• Inelastic
• Discretionary

Which of the following items is most likely to have elastic demand:

• Steak
• Bread
• Milk
• Clothing

Which of the following is characteristic of a seller's market:

• Low profits
• Small demand
• High prices
• Large supply