Supply and Demand

This is the amount of a good or service made by producers.

• Supply

• Demand

• Producer

• Consumer

These are the human resources that make goods and provide services.

• Consumers

• Producers

• Suppliers

• Demanders

These are the people who buy goods and services

• Producers

• Consumers

• Demanders

• Suppliers

This is how much of a good or service people are willing to buy at a certain price.

• Supply

• Consumer

• Demand

• Producer

This is the price at which the number demanded by buyers equals the number supplied by producers.

• Demand Curve

• Supply Curve

• Equilibrium Price

How are prices set in a Market Economy?

• Supply and Demand

• The government sets the prices

• Only producers set the prices

• Only consumers set the prices

What happens to the price of a good when the supply decreases?

• Price increases

• Price decreases

• Prices stays the same

What happens to the price of a good when the supply increases?

• Price increases

• Price decreases

• Prices stays the same

To try to make more money, NIKE raises the price of Air Jordan shoes from $100 to $200. What will happen to the demand for Air Jordan's after the price increases?

• The demand will increase

• The demand will decrease

• The demand will stay the same

On the Silk Road in China, merchants start selling silk fabric at a lower price. What will happen to the demand for Silk after the price decreases?

• The demand will increase

• The demand will decrease

• The demand will stay the same