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

Consumers become less willing to spend money on goods and services.

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.

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

Demand for the sneakers would decrease

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.

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

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

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.

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Brainpop Supply & Demand

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Answers

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

Brainpop Supply & Demand Flashcards | StudBud