Microeconomics quiz

It shows the relationship between the quantity demanded of a good and its price, all other influences on consumers’ planned purchases remaining the same.

• a) Supply curve

• b) Demand curve

• c) Consumer curve

• d) Producer curve

______is a good that can be used in place of another good.

• a) Normal goods

• b) Complement

• c) Inferior goods

• d) Substitute

“Other things remaining the same, the higher the price of a good, the greater is the quantity supplied”. This is definition for what?

• a) Law of economics

• b) Law of demand

• c) Law of supply

• d) Consumer law

As you know from the lecture, the supply of goods depends on several factors. Which of the following IS NOT RELEVANT to these factors ?

• a) The price of the good

• b) The prices of factors of production

• c) The number of suppliers

• d) The number of residents

A movement along the supply curve shows a change in the quantity demanded.

• True

• False

If the price of a good changes but everything else remains the same, there is a movement along the demand curve.

• True

• False

_____ is the price at with the quantity demanded equals the quantity supplied.

• a) Equilibrium number

• b) Equilibrium quantity

• c) Equilibrium price

• d) Equilibrium ratio

_____ in a market occurs when the price is such that the opposing forces of the plans of buyers and sellers balance each other.

• a) Economic balance

• b) Economic equality

• c) Disequilibrium

• d) Equilibrium

Consider the following statement: “When both demand and supply increase, the quantity increases”. Which of the followings DOES NOT belong to “what will happen with prices”?

• a) The price may increase

• b) The price may decrease

• c) The price may become inelastic

• d) The price may remain constant

Consider the following statement: “When demand decreases and supply increases, the price falls”. Which of the followings DOES NOT belong to “what will happen with quantity”?

• a) The quantity may become elastic

• b) The quantity may increase

• c) The quantity may decrease

• d) The quantity may remain constant