Economics: Supply and Demand Quiz

What is the key concept of markets?

• Voluntary exchange

• Government control

• Bartering system

• Forced transactions

What does the law of demand state?

• Price has no effect on quantity demanded

• When the price goes down, people buy less

• Demand is always constant

• When the price goes up, people buy more

What does the law of supply state?

• Price has no effect on quantity supplied

• When the price goes down, producers supply more

• When the price goes up, producers supply less

• Supply is always constant

What happens when there is a surplus in the market?

• Quantity demanded exceeds quantity supplied

• Price increases

• Quantity supplied exceeds quantity demanded

• Price decreases

What external force can shift the supply curve for strawberries to the left?

• Increase in demand

• New technology for farming

• Decrease in demand

• Harsh weather conditions

What is the equilibrium price and quantity on a supply and demand graph?

• Price where demand equals supply, Quantity where supply equals demand

• Price where supply is lowest, Quantity where demand is lowest

• Price where supply equals demand, Quantity where demand equals supply

• Price where demand is highest, Quantity where supply is highest

What caused the dramatic fall in gas prices in the United States in 2014?

• Decreased supply and decreased demand

• Increased supply and decreased demand

• Decreased supply and increased demand

• Increased supply and increased demand

What is the main reason for the support of regulated market for human organs?

• To decrease the risk of human trafficking

• To increase the risk of theft

• To increase exploitation of the poor

• To decrease the supply of organs

What is the main takeaway about supply and demand in economics?

• It is an absolute law like the law of gravity

• It is not influenced by human actions

• It is reliant on humans acting as buyers and sellers

• It is not predictable

What is the main reason for the support of creating kidney exchanges?

• To alleviate the shortage of donated kidneys

• To decrease the risk of theft

• To increase the exploitation of donors

• To decrease the supply of donated kidneys