Supply and Demand

Things that you can buy or sell are called:

• Goods

• Services

• Needs

• Wants

Lucas fixes his friends sink. He is providing a _______.

• service

• trade

• product

• good

The desire or willingness a consumer has to purchase a good or a service is called:

• demand

• shortage

• supply

• price

The amount of a good or service that is available to consumers:

• supply

• demand

• service

• product

Cold weather in Florida has damaged this year’s orange crop. Farmers have only half of the usual amount of oranges to sell. What will happen to the price of oranges?

• The price will increase

• The price will decrease

When the demand for a product or service is higher than the supply this causes what?

• shortage

• surplus

• consumer

• equilibrium

Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?

• The price will increase

• The price will decrease

When prices increase, the quantity demanded:

• decreases

• increases

• stays the same

When the price of Nike brand shoes increases, we will probably go purchase a brand like Adidas or Pumas instead. Which of the following best explains this behavior?

• Substitution Effect

• Price Gouging

• Monopoly

• Incentives

If input costs increase, what will a producer have to do to avoid losing revenue?

• raise prices

• lower prices

• decrease supply

• increase supply