Price theory

Where suppliers and consumers meet is called the equation point.

• True

• False

A famous rock star dies. How does this affect the market for his/her music and memorabilia?

Which statement is not true?

• Demand will decrease for the star's possessions.

• Supply will increase making more copies of the music may be making a memorable album with hit songs

• Price will decrease

DVDs are replaced by Netflix and Youtube.

Which statement is not true?

• Demand will decrease for DVD's

• Supply will increase for DVD's

• Price will slightly decrease because more DVD's are sold

H&M has a big summer sale at the end of the season.

Which statement is true?

• Demand will decrease for the clothing - therefore the sale

• Demand will increase for the clothing

• Price will stay the same

• The supply of summer clothing will increase

A new supplier of umbrellas enters the market.

Which statement is true?

• Demand will stay the same

• Demand will increase

• Demand will decrease

A new supplier of umbrellas enters the market.

Which statement is true?

• Supply will stay the same

• Supply will increase

• Supply will decrease

A new supplier of umbrellas enters the market.

Which statement is true?

• The price will likely stay the same

• The price will likely increase

• The price will likely decrease

When Starbucks entered the market what would happen to the supply of coffee?

• Supply will stay the same

• Supply will increase

• Supply will decrease

When Starbucks entered the market what would happen to the prices of Seattle coffee to keep their customers?

• Prices will stay the same

• Prices will increase

• Prices will decrease

What would likely happen to the supply and demand of big 4x4's and Suv's if petrol goes up?

• Supply and demand will increase

• Supply and demand will decrease

• Prices for the 4x4's and Suv's will increase

• Supply will go down and demand will go up