In the study of business and microeconomics, you’ll come across the terms “supply and demand” fairly often. It’s the concept by which we judge how much of a particular good or service the market can provide in relation to how much of the product is desired by the buyers. Naturally, the rate at which the supply increase directly correlates to how high demand is. Want to know more? Take the quiz!
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Only one seller
At least a few sellers
Many buyers and sellers
Firms that set their own prices
None of the above
Substitutes
Complements
Normal goods
Inferior goods
None of the above
Decreases the demand for the good
Decreases the quantity demanded for that good
Increases the supply of the good
Increases the quantity supplied of that good
Does none of the above
Decreases the demand for that good
Decreases the quantity demanded for that good
Increases the supply of that good
Increases the quantity supplied of that good
Does none of the above
A complementary good
A substitute good
A normal good
An inferior good
None of the above
Only one seller
At least a few sellers
Many buyers and sellers
Firms that are price takers
None of the above
A decrease in the price of watches
A decrease in consumer incomes if watches are a normal good
A decrease in the price of watch batteries if watch batteries and watches are complements
An increase in the price of watches
None of the above
An increase in the price of watches
An advance in the technology used to manufacture watches
A decrease in the wage of workers employed to manufacture watches
Manufactures' expectations of lower watch prices in the future
All of the above cause an increase in the supply of watches
There is a surplus and the price will rise
There is a surplus and the price will fall
There is a shortage and the price will rise
There is a shortage and the price will fall
The quantity demanded is equal to the quantity supplied and the price remains unchanged
There is a surplus and the price will rise
There is a surplus and the price will fall
There is a shortage and the price will rise
There is a shortage and the price will fall
The quantity demanded is equal to the quantity supplied and the price remains unchanged
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