Supply and Demand Practice

A cheaper substitute good enters the market.

• Demand increase

• Demand decrease

• Supply increase

• Supply decrease

The workers who make the product go on strike (stop working).

• Demand increase

• Demand decrease

• Supply increase

• Supply decrease

The government passes a law that lowers the age where it is legal to purchase the product.

• Demand increase

• Demand decrease

• Supply increase

• Supply decrease

Change in technology makes production time faster for the product.

• Demand increase

• Demand decrease

• Supply increase

• Supply decrease

The price of a complementary good falls. (think peanut butter and jelly).

• Demand increase

• Demand decrease

• Supply increase

• Supply decrease

The government tightens restrictions on the working conditions for the production of this product.

• Demand increase

• Demand decrease

• Supply increase

• Supply decrease

The worker unionize and negotiate higher wages. (Business has to pay more to produce the product).

• Demand increase

• Demand decrease

• Supply increase

• Supply decrease

Consumers expect the price of the good to increase next month. (What happens to demand NOW?)

• Demand increase

• Demand decrease

• Supply increase

• Supply decrease

It is a normal good and buyer's incomes rise.

• Demand increase

• Demand decrease

• Supply increase

• Supply decrease

The good becomes less popular with consumers.

• Demand increase

• Demand decrease

• Supply increase

• Supply decrease