Junior CR Summaries SS Practice Test 2026 - Free CR Summaries Practice Questions and Study Guide

In a simple market, price movements come from the interaction of demand and supply. When more buyers want a good than there is available, or when supply is tight, prices tend to rise. When demand falls or more of the good becomes available, prices tend to fall. The price adjusts to balance how much people want to buy with how much is available, moving toward an equilibrium where quantity demanded equals quantity supplied. This reflects how scarcity and people’s preferences shape what things cost and helps allocate resources efficiently. The other statements don’t fit because prices aren’t set by government decree in a typical market, aren’t driven by scarcity alone, and aren’t random—they respond to changes in demand and availability.