Assessment: Choices in a Free Market

The total amount of a good or service that is available to buy is called .

• Supply
• Demand

• Market

• Price

The amount of money earned by a business after costs are removed is called .

• demand

• incentive

• profit
• supply

A(n) is something that leads a person to make a certain choice.

• demand

• incentive
• profit

• supply

Which of the following people is earning money by providing a service?

• Anthony grows fruit to sell.

• Laura sews stuffed animals.

• Carl sells lemonade he makes.

• Marie teaches a third grade class

Which of the following will increase the profit at a lemonade stand?

• using cheaper lemons

• using more ingredients

• selling during cold weather

• giving glasses away for free

At Georgia's fruit stand, she sells apples. The of apples is how many she has to sell.

• buyer

• demand

• seller

• supply

Read each item. Think about what happens to supply or demand. How will the price in each item change? A new toy becomes very popular, and many people want it. How will the price of the toy change?

• Price will go up.

• Price will go down.

Read each item. Think about what happens to supply or demand. How will the price in each item change? A new bakery moves into the neighborhood. Now there are many more cookies that people can buy. How will the price of cookies change?

• Price will go up.

• Price will go down.

Read each item. Think about what happens to supply or demand. How will the price in each item change? Cold weather in Florida kills many trees that grow oranges. How will the price of oranges change?

• Price will go up.

• Price will go down.

Read each item. Think about what happens to supply or demand. How will the price in each item change? 11. Julie sells hot chocolate during the winter. But this winter has been very warm. How will the price of hot chocolate change?

• Price will go up.

• Price will go down.