Supply and Demand

Which statement BEST defines a regional exchange?

• The purchase of a good when the producer is in one grand division and the consumer is in another.

• The purchase of a good when both the producer and consumer are located in the same town.

Why do producers and cosumers have to make choices?

• because they have limited resources and limited wants

• because they have unlimited resources and unlimited wants

• because they have limited resources and unlimited wants

What stops people from having all the goods they want?

• unlimited resources

• demand

• unlimited wants

• scarcity

What will MOST likely happen if the price of peanut butter decreases?

• Consumers will buy less

• Consumers will buy more

• Consumers will buy the same amount

The amount of a good people want describes

• supply

• demand

• both

"determines price" describes

• supply

• demand

• both

"producers control this" describes

• supply

• demand

• both

"consumers control this" describes

• supply

• demand

• both

"the amount of goods available" describes

• supply

• demand

• both

Why might the price of a good increase?

• There is an increase in supply.

• There is a surplus of the good.

• There is a decrease in demand.

• There is a shortage of the good.