Understanding Supply and Demand Quiz

What is supply?

• The amount of a product that people want to buy

• The amount of a product that is available for sale

• The cost of a product

• The quality of a product

Which of the following best describes demand?

• The amount of a product available for sale

• The amount of a product people want to buy

• The price of a product

• The quality of a product

What does scarcity mean?

• Having more than enough resources

• Having limited resources

• Having unlimited resources

• Having no resources at all

What is opportunity cost?

• The cost of the next best choice that is given up

• The total cost of all choices

• The cost of the most expensive choice

• The cost of the least expensive choice

If a toy store has 10 dolls and 20 children want to buy them, what is this an example of?

• Supply

• Demand

• Scarcity

• Opportunity Cost

Which of the following is an example of opportunity cost?

• Choosing to buy a book instead of a toy

• Buying both a book and a toy

• Not buying anything

• Getting a book for free

If a farmer can grow either corn or wheat, and chooses to grow corn, what is the opportunity cost?

• The corn that is grown

• The wheat that could have been grown

• The money earned from selling corn

• The seeds used to plant corn

How does scarcity affect choices?

• It makes choices easier

• It forces people to make decisions

• It eliminates the need for choices

• It has no effect on choices

If a new video game is released and everyone wants it, but there are only a few copies available, what is this an example of?

• High supply

• Low demand

• Scarcity

• Opportunity cost

Why might a store lower the price of a product?

• To increase supply

• To decrease demand

• To increase demand

• To create scarcity