Demand and Supply

What is the quantity of a good that consumers are willing and able to buy at a given price?

• Quantity demanded
• Quantity supplied
• Price
• Equilibrium price

What is the quantity of a good that producers are willing and able to sell at a given price?

• Quantity demanded
• Quantity supplied
• Price
• Equilibrium price

At equilibrium, what is the relationship between quantity demanded and quantity supplied?

• Equal
• Greater
• Less
• Undefined

What is a measure of how responsive the quantity demanded of a good is to a change in its price?

• Price elasticity of demand
• Income elasticity of demand
• Cross elasticity of demand
• Unit elasticity

What is a measure of how responsive the quantity demanded of a good is to a change in consumer income?

• Price elasticity of demand
• Income elasticity of demand
• Cross elasticity of demand
• Unit elasticity

What is a measure of how responsive the quantity demanded of one good is to a change in the price of another good?

• Price elasticity of demand
• Income elasticity of demand
• Cross elasticity of demand
• Unit elasticity

Which of the following goods is likely to have a high price elasticity of demand?

• Luxury goods
• Necessities
• Both luxury goods and necessities
• None of the above

Which of the following goods is likely to have a low price elasticity of demand?

• Luxury goods
• Necessities
• Both luxury goods and necessities
• None of the above

Which of the following goods is likely to have a high income elasticity of demand?

• Luxury goods
• Necessities
• Both luxury goods and necessities
• None of the above

Which of the following goods is likely to have a low income elasticity of demand?

• Luxury goods
• Necessities
• Both luxury goods and necessities
• None of the above