Supply and Demand

The price of sport equipment is very high since its demand has increased.

What is the definition of supply?

• The quantity of a good or service that producers are willing and able to sell at a given price

• The quantity of a good or service that consumers are willing and able to buy at a given price

• The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers

• The price at which the quantity of a good or service demanded by consumers exceeds the quantity supplied by producers

What is the definition of demand?

• The quantity of a good or service that producers are willing and able to sell at a given price

• The quantity of a good or service that consumers are willing and able to buy at a given price

• The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers

• The price at which the quantity of a good or service demanded by consumers exceeds the quantity supplied by producers

What happens to the equilibrium price and quantity when demand increases and supply decreases?

• Equilibrium price increases and equilibrium quantity decreases

• Equilibrium price decreases and equilibrium quantity increases

• Equilibrium price increases and equilibrium quantity increases

• Equilibrium price decreases and equilibrium quantity decreases

What happens to the equilibrium price and quantity when demand decreases and supply increases?

• Equilibrium price increases and equilibrium quantity decreases

• Equilibrium price decreases and equilibrium quantity increases

• Equilibrium price increases and equilibrium quantity increases

• Equilibrium price decreases and equilibrium quantity decreases

What is a shortage?

• A situation in which the quantity of a good or service demanded by consumers exceeds the quantity supplied by producers

• A situation in which the quantity of a good or service supplied by producers exceeds the quantity demanded by consumers

• A situation in which the quantity of a good or service demanded by consumers equals the quantity supplied by producers

• A situation in which the quantity of a good or service demanded by consumers is equal to zero

What is elasticity of supply?

• A measure of how much the quantity demanded of a good or service responds to a change in price

• A measure of how much the quantity supplied of a good or service responds to a change in price

• A measure of how much the quantity demanded of a good or service responds to a change in income

• A measure of how much the quantity supplied of a good or service responds to a change in income

What is a price ceiling?

• A legal maximum price that can be charged for a good or service

• A legal minimum price that must be paid for a good or service

• A situation in which the quantity of a good or service demanded by consumers exceeds the quantity supplied by producers

• A situation in which the quantity of a good or service supplied by producers exceeds the quantity demanded by consumers

What is a price floor?

• A legal maximum price that can be charged for a good or service

• A legal minimum price that must be paid for a good or service

• A situation in which the quantity of a good or service demanded by consumers exceeds the quantity supplied by producers

• A situation in which the quantity of a good or service supplied by producers exceeds the quantity demanded by consumers

What is the definition of 'supply' in economic terms?

• The quantity of a good or service that producers are willing and able to sell at a given price

• The quantity of a good or service that consumers are willing and able to buy at a given price

• The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers

• The price at which the quantity of a good or service demanded by consumers exceeds the quantity supplied by producers