Supply
Demand
Equilibrium
What if?
Final Jeopardy
100
What is the "Law of Supply?"
The “Law of Supply” states that when price increases producers will be incentivized to produce more, and when price falls producers will produce less.
100
What is the "Law of Demand?"
The “Law of Demand” simply states that when the price goes up, people buy less, when the price goes down, people buy more.
100
What is the "Market equilibrium?"
Market equilibrium: is a market state where the supply in the market is equal to the demand in the market.
100
If the price of gasoline drops, what will most likely happen to the sale of large SUVs?
Gasoline and gas guzzling SUVs are complimentary goods, meaning the it gas becomes cheaper the sale of SUVs will most likely increase. People are more likely to buy a gas guzzling SUV if gas prices are low.
100
Give a real world example of how a shift supply or demand has affected the price/availability of a good or service in the marketplace. Ex. The price of gas has fallen, so the sale of trucks has increased because...
Answers will vary.
200
If the supply of an item decreases, which way does the supply curve shift?
What is "Left"
200
If the demand for an item increases, which way does the demand curve shift?
What is "Right"
200
If a market is out of equilibrium and more of a product is being produced than is wanted/bought by by consumers. This is will result in a __________?
What is a "surplus"
200
A 'Dunkin Doughnuts' opens a block away from the neighborhood 'Starbucks', what will most likely happen to coffee sales at 'Starbucks'? Why
The sale of coffee at 'Starbucks' will most likely decrease because 'Dunkin Doughnuts' coffee is a substitution good and it will take some of the coffee customers.
300
A rapper's album is leaked on the internet before its release date and sales of the album are less than expected. Explain what has to do with supply and demand.
The "supply" of the album was high, and it met the "demand" before the album was officially on sale. This cause the rapper to lose money on the album
300
A new study comes out showing that eating pears will extend your life and prevent illness. What will most likely happen to the price of pears after this news? Why?
The price of pears will most likely go up, especially in the short term. This is because the demand for pears will increase faster than the supply.
300
If a market is out of equilibrium and more people want to buy a product than exists, this is will result in a __________?
What is "Shortage"
300
In many colleges across the U.S., the percentage female students enrolled is around 70%, with male student only making up about 30% of the student body. How does this affect the number of dates male and female students participate in?
The same rules of supply/demand economics apply to this social situation. Because the supply of girls is high and the supple of boys low, boys have become the ones in higher demand. This gives boys more options and generally means they go on more dates.
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