Supply and Demand Quiz

In a supply and demand graph, when the demand line shifts to the right, the demand increases.

Taxes and subsidies are variables that can affect the supply shift factor.

When the price on an item increases, the supply provided by the sellers decreases.

When talking about the elasticity of demand, the price of an item is not important.

A market takes place when more than one buyer and seller are present.

In an inelastic graph, there is a huge change in demand when the price shifts.

The graph of elastic supply is less horizontal compared to the inelastic graph

The production of Jolly Ranchers is an example of inelastic supply

When a supply curve shifts to the left, that symbolizes an increase in supply.

The point where the supply curve meets the demand curve shows a shortage.