Supply and Demand Quiz

Zoe went to a store to buy apples. She noticed that as the price of apples increased, she was willing and able to buy fewer apples. What is this an example of?

• Positive relationship between price and quantity

• Negative relationship between price and quantity

• No relationship between price and quantity

• Random relationship between price and quantity

Michael, Mia, and Evelyn are discussing the reasons for the law of demand in their economics class. They come up with three reasons. Can you identify which set of reasons they correctly identified?

• Substitution effect, income effect, and law of diminishing marginal utility

• Supply and demand, income effect, and law of diminishing marginal utility

• Substitution effect, demand curve, and law of diminishing marginal utility

• Price effect, income effect, and law of diminishing marginal utility

Mason, Avery, and Priya are discussing the factors that can shift the demand for a product. They all agree on most factors, but one of them is not a shifter of demand. Which one is it?

• Taste and preferences

• Price of substitutes and compliments

• Income

• Price of ice cream

Sophia is running a lemonade stand. She notices that when she increases the price of her lemonade, she is able to supply more lemonade. What is this relationship called?

• Positive relationship

• Negative relationship

• No relationship

• Random relationship

Ethan, Liam, and Mia are running a lemonade stand. Which of the following would be a shifter of supply for their lemonade stand?

• Change in the price of lemons or sugar

• Change in the price of ice cream at the shop across the street

• Change in demand for lemonade

• Change in their expectations for future lemonade sales

Oliver, William, and Noah are running a lemonade stand. They are trying to determine the optimal price to sell their lemonade. What is the market clearing price in this scenario?

• The highest price at which their friends are willing to buy lemonade

• The lowest price at which they are willing to sell lemonade

• The price at which the number of lemonades they can make equals the number their friends want to buy

• The price at which the number of lemonades they can make is less than the number their friends want to buy

During a hot summer day, Luna, Scarlett, and Abigail noticed an increase in demand for their homemade ice cream stand. What happens to the price and quantity of their ice cream?

• Price increases, quantity increases

• Price decreases, quantity decreases

• Price increases, quantity decreases

• Price decreases, quantity increases

During a hot summer day, Jackson, Benjamin, and Anika run an ice cream stand. What happens to the price and quantity of ice cream they sell if there is a sudden decrease in their ice cream supply?

• The price of ice cream increases, and they sell more ice cream

• The price of ice cream decreases, and they sell less ice cream

• The price of ice cream increases, and they sell less ice cream

• The price of ice cream decreases, and they sell more ice cream

Ava, David, and Mason read a research paper that claims eating ice cream enhances intelligence. What would likely happen to the price and quantity of ice cream in the market?

• Price increases, quantity increases

• Price decreases, quantity decreases

• Price increases, quantity decreases

• Price decreases, quantity increases

Avery, Nora, and Scarlett discovered a machine that can produce ice cream quicker and cheaper. What happens to the price and quantity of ice cream they produce?

• Price increases, quantity increases

• Price decreases, quantity decreases

• Price increases, quantity decreases

• Price decreases, quantity increases