3.1.4 - Supply and Demand: The Market Forces
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Practice Questions
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Define supply.
💡 Hint: Think about the willingness to sell at different prices.
What does the Law of Demand state?
💡 Hint: Remember how consumers react to price changes.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the Law of Supply?
💡 Hint: Recall how producers react to pricing changes.
True or False: A surplus occurs when demand exceeds supply.
💡 Hint: Think of how sales change based on inventory levels.
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Challenge Problems
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Analyze how a sudden increase in consumer income affects the demand curve for luxury goods. What would happen to the equilibrium price?
💡 Hint: Consider how consumers shop differently when they can afford more.
Consider a new technology that reduces production costs for cars. Describe the likely changes to the supply curve and market equilibrium.
💡 Hint: Think about how cheaper production affects what places like dealerships can offer.
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