Understanding Supply and Demand

Why is the genuine gemstone crown expected to have a higher price than the plastic one?

• Because it is themed after a popular movie

• Because it is rare and unique

• Because it is mass-produced

• Because it is made of plastic

What factor, besides availability, influences the price of a product?

• The color of the product

• The demand for the product

• The size of the product

• The weight of the product

What is the 'invisible hand' according to Adam Smith?

• A type of economic model

• An unseen force guiding supply and demand

• A market regulation

• A government policy

What does the laissez-faire approach advocate?

• Increased taxes on imports

• Non-interference by the government in trade

• Government intervention in trade

• Strict regulation of markets

How can supply and demand principles be applied to tackle illegal drug trade?

• By increasing the supply of drugs

• By reducing the demand for drugs

• By ignoring the drug trade

• By legalizing all drugs