Practice- Supply & Demand

Front

What does the Law of Supply and Demand state?

Back

The price of a good balances at the point where the quantity demanded equals the quantity supplied.

Front

What is market equilibrium?

Back

When the quantity of a product demanded equals the quantity supplied.

Front

Which of the following is NOT a factor affecting supply? Technology advancements, Cost of production, Number of suppliers.

Back

Consumer preferences.

Front

Which of the following is a factor affecting demand? Production technology, Income of consumers, Cost of raw materials, Number of suppliers.

Back

Income of consumers.

Front

What is scarcity?

Back

When there is not enough of a resource to satisfy all wants and needs.

Front

How does an increase in consumer income affect the demand curve for a normal good?

Back

It shifts to the right.

Front

What happens to the supply curve when there is an improvement in production technology?

Back

It shifts to the right.

Front

What effect does an increase in the price of a substitute good have on the demand for a product?

Back

Increases the demand for the product.

Front

What is the result of a government setting a price below the market equilibrium?

Back

A shortage of the product.

Front

Which of the following would cause a leftward shift in the supply curve of wheat? A decrease in the price of wheat. An increase in the price of fertilizers. A technological advancement in wheat harvesting. A decrease in the number of wheat farmers.

Back

An increase in the price of fertilizers.