Quantity Demanded is defined as the amount of goods or services that

buyers are willing and able to purchase at particular prices

The law of demand states:

Quantity demanded increases as price decreases

Quantity supplied is the amount of a good or service that:

sellers are willing and able to sell at particular prices

What are the 3 functions of the Price Mechanism

Signalling, Rationing and Giving Incentives

A market must answer the fundamental questions of:

What, how much, and whom to produce for

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Price Mechanism

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Quiz to consolidate an introductory lesson to supply and demand and the price mechanism.

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Questions 12

Answers

1
Quantity Demanded is defined as the amount of goods or services that
buyers are willing and able to purchase at particular prices
sellers are willing and able to produce at a particular time
buyers buy all the time
buyers are able to buy in a market
2
How many sodas are demanded at $1.50
350
240
280
890
3
What motive do sellers/suppliers have that drives the Law of Supply?
sales
game
economic
profit
4
The law of demand states:
Quantity demanded increases as price decreases
Quantity demanded increases as price increases
price isn't a factor in changing quantity demanded
Quantity demanded is always in equilibrium with supply
5
The Law of Supply states there is an increase in the quantity supplied when
price decreases
price remains the same
price increases
price is at equilibrium
6
What is the surplus amount at $99,000
9
8
7
1
7
Quantity supplied is the amount of a good or service that:
sellers will not produce for less than their price
sellers are willing and able to sell at particular prices
is produced for a particular market
buyers are willing and able to purchase
8
If the price is too low in a market, then
A Surplus will occur
Buyers will buy more
A shortage will occur
Equilibrium is reached
9
At price $99,000 there is
A shortage of supply
A surplus of supply
a lot of apartments
Equilibrium
10
What are the 3 functions of the Price Mechanism
Signalling, Rationing and Giving Incentives
Signalling, Rationing and Pricing
Rationing, Pricing and Resourcing
How, what and for whom to produce goods for
11
Equilibrium is
where demand is greater than supply
where supply is greater than demand
never reached in a free market
where demand equals supply
12
A market must answer the fundamental questions of:
How, why and where to produce
How much, what and why produce
What, how much, and whom to produce for
supply and demand

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