Principles of Supply and Demand

Question 1

Popular band sells a limited number of signed records. The owners of the records can sell them for ten times their value

Accepted Answer

seller’s market

Question 2

The United States economic system is largely based on which of the following?

Accepted Answer

capitalism

Question 3

The rivalry between companies selling similar products and services

Accepted Answer

competition

Question 4

In 2020, due to the pandemic, there was a large demand for Lysol cleaning products. This resulted in

Accepted Answer

shortage

Question 5

Choose the best term to complete the sentence. Equilibrium is _______ at rest.

Accepted Answer

rarely

Question 6

Couple is looking to buy a new house. There are many houses on the market, able to purchase the home for a low price

Accepted Answer

buyer’s market

Question 7

A clothing store that produces a large amount of winter coats right before spring & then has trouble selling them, is

Accepted Answer

a coat surplus

Question 8

There is a large change in the demand of a product or service based on the change of an economic factor like price, it's

Accepted Answer

elastic demand

Question 9

Economic theory that explains the interaction between the buyers & sellers of an item is known as which of the following

Accepted Answer

law of supply and demand

Question 10

Which is NOT an example of inelastic demand?

Accepted Answer

soft drinks

Question 11

Ticketmaster had control over a majority of ticket sales for United States events. This situation is an example of

Accepted Answer

monopoly

Question 12

Which of the following occurs when the quantity demanded exceeds the quantity supplied?

Accepted Answer

shortage

Question 13

The price of car gasoline fluctuates up & down frequently. People’s demand for gasoline doesn’t vary much. This is

Accepted Answer

inelastic demand

Question 14

Economic system where production, wages, and prices are determined via the application of the law of supply and demand

Accepted Answer

free market

Question 15

Momentary state or condition where quantity of a product supplied equals quantity demanded for same product is known as

Accepted Answer

equilibrium

Questions 15