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