Supply & Demand

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

• it goes up

• it stays the same

• it goes down

• it fluctuates randomly

Supply is how much a producer (a business) is able and willing to make for sale to consumers.

• The total amount of goods available in the market.

• The quantity of a product that consumers are willing to buy.

• how much a producer (a business) is able and willing to make for sale to consumers.

• The price at which goods are sold to consumers.

Assume the image is showing the market for apples. Which of the headlines could indicate the pictured shift is occurring in the market?

• Pesticides on apples linked to mouth cancer.

• Storms destroy apple orchards.

• An apple a day really does keep the doctor away.

• New genetic strain leads to apple trees that produce twice as many apples.

When quantity supplied and quantity demanded is equal

• equilibrium

• surplus

• shortage

• disequilibrium

A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?

• 
• A pie chart of orange production by state

• A line graph of orange prices over the last decade

• A bar chart comparing orange exports and imports

Assume the image is showing the market for apples. Which of the headlines could indicate the pictured shift is occurring in the market?

• Pesticides on apples linked to mouth cancer.

• Storms destroy apple orchards.

• An apple a day really does keep the doctor away.

• New genetic strain leads to apple trees that produce twice as many apples.

The movement from Point A to Point B represents a(n)

• increase in the quantity supplied.

• decrease in the quantity supplied.

• no change in the quantity supplied.

• increase in demand.

When the gov't pays money to businesses, usually to encourage them to produce a certain product..

• grants

• subsidies

• tax breaks

• loans

What does this curve represent? Options: supply, equilibrium, demand, surplus

• supply

• equilibrium

• demand

• surplus

What does this curve represent?

• demand

• supply

• equilibrium

• shortage