Supply and Demand

Custom and tradition dictate what to produce, how to produce, and for whom.

This scenario represents what form of economy?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

The state owns the factors of production. Economic planning is done by the government. Central planning committee attempts to perform functions of a market.

This scenario represents what form of economy?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

The Law of Demand states "As price increases, the quantity (amount) purchased by consumers (the people buying the good/service)..."

• Increases

• Decreases

• Stays the same

The Law of Demand also states "When the price of a good or service decreases, the quantity (amount) demanded for the good or service...".

• Increases

• Decreases

• Stays the same

True or False:  A change in price does NOT change demand.  It changes the quantity demanded.

• True

• False

An example of a factor that will shift the demand curve is

True or False: When demand increases the demand curve will shift to the right. When demand decreases the demand curve will shift to the left.

• True

• False

If your income increases, the demand for most goods and services will...

(The reverse is also true)

• Increase

• Decrease

• Stay the same

Example of Changes in Substitute goods practice: If the price of Spotify increases, the demand for Apple music will...

• Increase

• Decrease

• Stay the same

Example of Changes in Substitute goods practice: If the price of Netflix decreases, the demand for hulu music will...

• increase

• Decrease

• Stay the same