Why do prices go down when consumers start saving their money?

Consumers become less willing to spend money on goods and services

Who would set the equilibrium point for the price of a new type of sneaker?

Neither A nor B -- the equilibrium point is set by market forces

What is likely to happen if the price of a new pair of sneakers went up?

Demand for the sneakers would decrease

What factor is most likely to cause an increase in demand for a new type of automobile?

A commercial in which the car is endorsed by a popular celebrity

When do we say that the market has "cleared?"

When supply and demand balance out

According to the laws of supply and demand, when will companies produce more of a product?

When they can sell it for a higher price

What might happen if the demand for a new type of sneaker began rising quickly?

The sneaker company would raise the price of the sneakers.

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BrainPop: Supply and Demand

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Questions 10

Answers

1
Why do prices go down when consumers start saving their money?
Consumers become less willing to spend money on goods and services
Manufacturers start producing fewer products
Demand for goods begins to outpace supply
Demand for currency goes up as people begin saving
2
Which condition would lead to the highest prices?
High supply, low demand
Low supply, high demand
High supply, high demand
Low supply, low demand
3
Who would set the equilibrium point for the price of a new type of sneaker?
The manufacturer
The consumer
Either A or B -— it depends on the cost to produce the sneaker
Neither A nor B -- the equilibrium point is set by market forces
4
What is likely to happen if the price of a new pair of sneakers went up?
Demand for the sneakers would increase
Demand for the sneakers would decrease
Merchants would begin offering sales on the sneakers
It would be impossible to find a pair in stores
5
What factor is most likely to cause an increase in demand for a new type of automobile?
A rumor that the car's gas tank is prone to explosion
The price of the car going up
A commercial in which the car is endorsed by a popular celebrity
A comedian making fun of the car on late-night TV
6
When do we say that the market has "cleared?"
When supply outpaces demand
When supply and demand balance out
When consumers begin saving their money
When demand outpaces supply
7
According to the laws of supply and demand, when will companies produce more of a product?
When the price people will pay for it goes down
When they can sell it for a higher price
When demand decreases
When the economy turns downward
8
What might happen if the demand for a new type of sneaker began rising quickly?
The sneaker company would lower the price of the sneakers.
People would refuse to pay more money for the sneakers.
The manufacturer would begin making fewer sneakers.
The sneaker company would raise the price of the sneakers.
9
The equilibrium point is at the confluence of the supply and demand curves. What does "confluence" mean?
Lowest point
Intersection
Topmost point
Midpoint
10
Which of these is neither a good nor a service?
A $20 bill
A meal at a restaurant
A piano lesson
A gallon of gasoline

BrainPop: Supply and Demand Flashcards | StudBud