Understanding Supply and Demand

What is the main focus of the financial literacy series mentioned in the introduction?

• Personal budgeting and macroeconomics

• Real estate market analysis

• Advanced stock trading techniques

• Cryptocurrency investment strategies

What real-life economic principle is illustrated by the popularity of the Prager station console?

• Fiscal policy

• Inflation and deflation

• Supply and demand

• Monetary policy

What happens when there is a surplus of a product in the market?

• Supply decreases

• Prices increase

• Prices decrease

• Demand increases

What is the term used to describe the limited availability of resources?

• Surplus

• Equilibrium

• Abundance

• Scarcity

How can external factors like natural disasters affect supply and demand?

• They increase supply

• They cause fluctuations in prices

• They stabilize prices

• They have no effect

What is the invisible force that shapes the market in a free economy?

• Consumer preferences

• Government intervention

• Technological advancements

• Invisible hand

What is a common result of government-mandated price controls?

• Decreased scarcity

• Market equilibrium

• Increased supply

• Surplus with little demand

What is one piece of advice given for making smart shopping decisions?

• Purchase only luxury items

• Ignore market trends

• Wait for prices to drop when demand decreases

• Always buy the latest product immediately

What should consumers observe to understand market trends better?

• Celebrity endorsements

• Only local events

• Only global events

• Price changes over time

What is a potential benefit of understanding supply and demand for entrepreneurs?

• It ensures constant demand

• It guarantees business success

• It helps in identifying market opportunities

• It eliminates competition