Supply and Demand Basics
Explore the fundamental concepts of supply and demand, how they interact, and their impact on prices in a market economy.
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Supply and Demand Basics
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Read each question carefully and answer to the best of your ability. This worksheet will test your understanding of supply and demand.
1. What is 'demand' in economics?
The amount of a good or service producers are willing to sell.
The amount of a good or service consumers are willing and able to buy.
The total money a business makes.
The cost of producing a good or service.
2. What happens to demand when the price of a product increases?
Demand increases.
Demand decreases.
Demand stays the same.
It depends on the season.
3. When there is a high supply of a product and low demand, the price will likely .
4. The point where supply and demand are equal is called the price.
5. If a popular new toy is released, its demand will likely decrease.
True
False
6. A drought would likely increase the supply of crops.
True
False
7. Explain the difference between 'supply' and 'demand' in your own words.
8. Give an example of how supply and demand can affect the price of a concert ticket.