MIDTERM TEST 3

What do supply and demand describe in economics?

• The relationship between the cost of production and consumer preferences

• The relationship between the price of goods and the quantity supplied

• The relationship between the availability of goods and consumers' desire for those goods

• The relationship between government policies and market dynamics

What does the supply curve represent?

• The quantity of a good or service that suppliers are willing to provide at different prices

• The quantity of a good or service that consumers are willing to purchase at different prices

• The impact of government policies on market equilibrium

• The relationship between price and quantity demanded

What happens to the quantity supplied when the price of a good or service increases?

• It decreases

• It remains the same

• It fluctuates randomly

• It increases

What does the demand curve represent?

• The quantity of a good or service that consumers are willing to purchase at different prices

• The impact of government policies on market equilibrium

• The relationship between price and quantity supplied

• The quantity of a good or service that suppliers are willing to provide at different prices

What happens to the quantity demanded when the price of a good or service decreases?

• It increases

• It fluctuates randomly

• It remains the same

• It decreases

What is the point where the supply and demand curves intersect known as?

• Shortage point

• Surplus point

• Black market

• Equilibrium price

What is the equilibrium price?

• The price at which there is no supply or demand

• The price at which the quantity supplied perfectly matches the quantity demanded

• The price at which the quantity demanded exceeds the quantity supplied

• The price at which the quantity supplied exceeds the quantity demanded

What does price elasticity of demand measure?

• The impact of government policies on market equilibrium

• The responsiveness of demand to price changes

• The responsiveness of supply to price changes

• The relationship between price and quantity supplied

What is a price ceiling?

• The highest legal price that can be paid in a market for goods and services

• The lowest legal price that can be paid in a market for goods and services

• The maximum amount a seller can charge for a good or service

• The lowest salary that can be paid to workers

What does a surplus describe in the context of inventories?

• The amount of an asset or resource that exceeds the portion that's actively utilized

• The amount of an asset or resource that's actively utilized

• The amount of an asset or resource that's actively utilized but not needed

• The amount of an asset or resource that's actively utilized and in high demand