Supply and Demand

For the law of demand, as price rises, what happens to quantity demanded?

• It goes up
• It goes down
• It stays the same

For the law of supply, as price rises, what happens to quantity supplied?

• It goes up
• It goes down
• It stays the same

When quantity supplied and quantity demanded is equal.

• Equilibrium
• Surplus
• Shortage

If a price is above equilibrium price, it creates a...

• Shortage
• Surplus
• Demand

If a price is below the equilibrium price it creates a...

• Shortage
• Surplus
• Demand

When the supply of a product or service goes up and the demand stays the same the Price will typically do what?

• Rise
• Fall
• Stay the same

Supply is

• how much a producer (a business) is able and willing to make for sale to consumers.
• how much consumers are willing to buy.
• the goods that are left over after a sale.

What does the law of demand say

• consumers will buy less of something when the price goes down
• consumers will buy more of something when price increases.
• consumers will buy more of something when prices decrease.

Supply and demand determine

• needs and wants
• the price for a good or service
• all goods produced

Equilibrium is

• when there is a surplus
• when there is a shortage
• when the producer and the consumers agree on a price