Supply and Demand

What is demand?

The desire, willingness and ability to buy a good or service

What information does a demand schedule provide?

The quantities consumers are willing to buy at different prices

According to the law of demand, what usually happens when a product’s price increases?

Quantity demand decreases

Which statement best explains why a demand curve slopes downward?

Consumers generally buy less at higher prices and more at lower prices

A student enjoys the first slice of pizza more than the fourth slice. Which concept does this demonstrate?

Diminishing marginal utility

What does utility measure?

The pleasure, usefulness, or satisfaction a product provides

Using the widget schedule below, how many widgets will consumers demand at $4?

4 widgets

A product becomes more popular while its price remains unchanged. What happens

Demand shifts right

A decrease in demand shifts the demand curve:

To the left

Coke and Pepsi are substitutes. If the price of Coke increases, what is the most likely effect on Pepsi demand?

Pepsi demand increases

Peanut butter and jam are complementary goods. If peanut butter becomes more expensive, what is the likely effect on jam?

Jam supply increases

Consumers expect they may lose their jobs soon. Which demand factor is most direclty involved?

Expectations

Which option lists the BITER factors that can shift demand?

Buyers, income, tastes, expectations, and related goods

According to the law of supply, what normally happens when a product’s price increases?

Quantity supplied increases

Why does the supply curve generally slope upward?

Higher prices can give producers greater incentives to cover costs and earn profit

What is profit?

Money remaining after business covers its costs

A producer supplies 4 widgets at $2 and 6 widgets at $3. This illustrates:

An increase in quantity supplied as price increases

A business adopts new technology that make production more efficient. What is the most likely result?

Supply increases and shifts right

The price of rubber, a major input to basketball production, increases. What is the most likely effect?

Supply decreases and shifts left

The government gives basketball produces subsidy. What is the most likely effect?

Supply increases because the subsidy encourages production

The government introduces a new tax on basketball production. What is the likely effect?

Supply shifts left because production becomes more expensive

Several producers leave the widget market. What happens to supply?

Supply decreases because the number of sellers falls

At a price of $4, quantity supplied 8 widgets and quantity demanded is 4 widgets. What exists?

A surplus of 4 widgets

At a price of $2, quantity demanded is 8 widgets and quantity supplied is 4 widgets. What exists?

A shortage of 4 widgets

When a surplus occurs in a competitive market, sellers generally

Lower prices to encourage sales

When a shortage occurs in a competitive market, sellers generally

Raise prices as buyers compete for limited products

A basketball market begins at equilibrium. Basketball becomes more popular, while supply remains unchanged. What is the most likely initial effect at the original price?

Demand shifts right, creating a shortage

Which statement correctly defines market equilibrium?

Quantity demand equals quantity supplied

Travis Scott announces additional concerts near Washington DC. After clip from his performance spread across Tiktok, many students at Yorktown High School become interested in attending. Students began making plans with friends, saving money, and asking their families to purchase tickets.Even students who previously had little interest in the concert began considering going. At every possible ticket price, more people now want to purchase tickets

Yorktown announces a major basketball game against Wakefield. Students begin showing more school pride, and popular student groups encourage everyone to wear Yorktown basketball jerseys. Social media posts featuring students wearing the jerseys become increasingly popular. Students who rarely purchase school merchandise begin looking for jerseys to wear to the game. At every possible price, more students want to purchase Yorktown jerseys.

A popular sneaker brand releases a limited-edition pair that quickly becomes a trend among Yorktown students. However,, a few weeks later, a new sneaker design becomes more popular on social media. Students begin spending their money on the newer design instead of the original sneakers. Even though the original sneakers are offered at the same prices, fewer students want to purchase them.

IShowSpeed collaborates with Mr.Siddiqui to review a new energy drink during a popular online video. Students begin sharing clips from the video and discussing the drink at school. Students who previously purchased other beverages start looking for the featured drink in local stores. As the trend spreads, more students want to purchase the drink at every possible price.