Supply and Demand Review Game

1. In a market economy, which of the 1. In a market economy, which of the following ensures that the right product is available at the right time, in the right quantities, and at the right prices? A. Government B. Consumers C. Business Owners D. Market Forces

2. What happens to demand when prices rise? A. Demand Rises B. Demand falls. C. Demand stays the same. D. None of the above.

3. What happens to supply when prices rise? A. Supply rises B. Supply falls C. Supply stays the same D. None of the above

4. In a seller’s market, what will happen 4. In a seller’s market, what will happen as a means to balance the market. A. The seller will reduce prices B. The seller will keep prices the same C. The seller will raise the prices D. The seller will stop making the product

5. It is the end of a winter season and. your 5. It is the end of a winter season and your clothing store has a huge supply of winter clothes. What would you be likely to do? A. Decrease prices to increase supply B. Increase prices to increase demand C. Increase prices to increase supply D. Decrease prices to increase demand

6. According to the law of supply. and demand, what does this. curve 6. According to the law of supply and demand, what does this curve indicate a supply or demand?

7. A product that is said to have elastic 7. A product that is said to have elastic demand, could also be explained as A. A change in price has impact on demand B. A change in supply has impact on demand. C. An equilibrium is experienced D. A change in price has no impact on demand

8. In a buyer’s market-- A. There is a shortage, and prices are lowered to increase the demand. B. There is a shortage, and prices are raised to decrease the demand. C. There is a surplus, and prices are lowered to increase the demand. D. There is a surplus and prices are raised to increase the demand.

9. This represents which schedule— supply or demand? How do you know?

10. When a product has inelastic demand, you could also say: A. A price will be constant B. The demand will be constant even if the price changes C. The demand will change as a result of price changes. D. There will automatically be an equilibrium effect on the market.

Tie Breaker Question Draw a supply and demand curve that has an inelastic demand. Explain why your curve looks the way it does.

Tie Breaker Answer