Supply & Demand
This is the amount of a good or service that producers are willing and able to sell.
What is Supply?
In this type of economy, traditions and customs help determine what goods and services are produced.
What is a traditional economy?
This happens when consumers want more of a product than producers are willing or able to provide.
What is a shortage?
If there is a shortage of a product, prices will generally move in this direction.
What is up?
A product that a country buys from another country is called this.
What is an import?
This is the amount of a good or service that consumers are willing and able to buy.
What is demand?
In this type of economy, the government makes most of the decisions about what to produce and how to produce it.
What is a command economy?
This happens when producers have more of a product available than consumers want to buy.
What is a surplus?
If there is a surplus of a product, prices will generally move in this direction.
What is down?
A product that a country sells to another country is called this.
What is an export?
If the demand for a product increases while the supply stays the same, what will most likely happen to its price?
What is the price will increase?
In this type of economy, buyers and sellers largely determine what is produced and what prices are charged.
What is a market economy?
A store has 100 water bottles, but customers only want to buy 60. Is this a shortage or a surplus?
What is a surplus?
A bakery makes 500 cupcakes, but customers only want to buy 300. What will the bakery likely do to its prices to sell the extra cupcakes?
What is lower the prices?
Countries trade with one another so they can get goods and services that they may not be able to produce as easily or cheaply themselves. What is this called?
What is international trade?
A new sneaker becomes extremely popular, but the number of sneakers available does not change. What will most likely happen to demand and price?
What are higher demand and a higher price?
Most countries today have this type of economy, which combines characteristics of market and command economies.
What is a mixed economy?
A concert has 10,000 tickets available, but 20,000 people want to buy them. Is this a shortage or a surplus?
What is a shortage?
A popular concert has very few tickets left, but many people still want them. What will likely happen to the price of the remaining tickets?
What is the price will increase?
If the United States buys coffee from Brazil, is the coffee an import or an export for the United States?
What is an import?
A farmer grows twice as many tomatoes as usual, but people want to buy the same amount. What will most likely happen to the price of tomatoes?
What is the price will decrease?
A country allows businesses to compete and consumers to make choices, but the government also creates rules and provides some services. What type of economy is this?
What is a mixed economy?
A popular toy sells out because more people want it than stores have available. What economic problem is occurring, and what will likely happen to the price?
What is a shortage, and the price will likely increase?
A toy becomes less popular, and stores have a large number of them sitting on their shelves. What is likely to happen to the price?
What is the price will decrease?
Country A is very good at producing wheat, while Country B is very good at producing cars. Why might both countries benefit from specializing and trading with each other?
What is each country can focus on what it produces efficiently and trade for what it needs?