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BU20: 2.03 Supply and Demand Flashcards | StudBud
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BU20: 2.03 Supply and Demand
BU20: 2.03 Supply and Demand
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#supply#demand
Flashcards
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Questions
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Answers
1
This is a cause of higher prices for fruits and vegetables...
High supply
A new diet
A drought
High demand
2
A market is made up of all of the transactions for the same product or service.
True
False
3
This is the prime motivator that influences businesses to produce more or less of something.
Money
To be the best
Quality
Time
4
What happens after a market has been in a surplus?
The price will stay the same but demand will increase.
The price of the product will rise to equilibrium.
The price will stay the same but supply will increase.
The price will drop or lower.
5
A transaction is the free exchange of a product or service for money, credit or thing of value
True
False
6
Why do shortages exist?
Demand is low.
Supply is high.
The price is above the equilibrium.
At the lower price, supply is low and demand high.
7
According to the Law of Demand: if price is low, demand is...
low
High
8
The most important factor of a free market...
Is cheap goods.
Freedom of choice.
Less taxes.
Lots of things to buy.
9
According to the Law of Supply: If the price is low, supply is...
High
Low
10
In any free market who decides on the price of any product or servise?
Consumers
Suppliers and consumers
The government
Suppliers
11
At the equilibrium price...
Demand is low.
Supply is high.
Supply of a product is the same as demand for the product.
There is a surplus.
12
A surplus usually exists when...
When supply is low.
When demand is high.
When supply is higher than demand.
The price for the product is low.
13
Consumers demand less of a product or service at a high price because...
Most consumers only have a limited amount of money to spend.
There are substitute products that cost less.
The price is too high.
They don't like Nike shoes.
