Introduction to Supply and Demand

What is the definition of 'supply'?

• Amount of something

• Consumer want + ability to pay

• Amount producers are willing to sell

• What buyers pay for something

What does 'demand' refer to?

• Amount of something

• What buyers pay for something

• Consumer want + ability to pay

• Amount producers are willing to sell

What is a 'market'?

• Consumer want + ability to pay

• What buyers pay for something

• Amount producers are willing to sell

• Place where products are exchanged

What happens when there is a surplus?

• Supply equals demand

• Demand equals supply

• Demand is greater than supply

• Supply is greater than demand

What is the result of a shortage?

• Supply is greater than demand

• Demand equals supply

• Supply equals demand

• Demand is greater than supply

What is 'equilibrium' in a market?

• Demand is greater than supply

• Supply is greater than demand

• Demand equals supply

• Supply equals demand

Who is a 'consumer'?

• Person who buys the product

• Makes or sells the product

• Amount producers are willing to sell

• Group working towards shared goal

Who is a 'producer'?

• Makes or sells the product

• Person who buys the product

• Amount producers are willing to sell

• Group working towards shared goal

What are 'goods'?

• Physical items people buy

• Actions people buy

• Amount producers are willing to sell

• Consumer want + ability to pay

What are 'services'?

• Actions people buy

• Physical items people buy

• Amount producers are willing to sell

• Consumer want + ability to pay