Supply and Demand Quiz for Grade 5

What is the law of demand?

• As the price of a good or service increases, the quantity demanded for that good or service decreases, and vice versa.

• The law of demand only applies to luxury goods, not necessities

• The law of demand states that the quantity demanded for a good or service remains constant regardless of price changes

• As the price of a good or service increases, the quantity demanded for that good or service increases

Explain the concept of supply in economics.

• The amount of a good or service that producers are willing and able to sell at a given price and time.

• The amount of a good or service that consumers are willing and able to buy at a given price and time.

• The process of making a product available for purchase by offering it in the market.

• The total amount of money available to spend on goods and services.

What happens to the price of a product when there is a high demand and low supply?

• The price of the product decreases.

• The price of the product remains the same.

• The price of the product fluctuates.

• The price of the product increases.

Give an example of a product that has high demand and low supply.

• N95 masks

• Luxury cars

• Gold bars

• Diamonds

How does the equilibrium price and quantity change when there is an increase in demand but no change in supply?

• Equilibrium price decreases, quantity increases

• Equilibrium price and quantity both increase

• Equilibrium price increases, quantity decreases

• Equilibrium price and quantity both decrease

Define the term 'demand curve' in economics.

• The demand curve shows the relationship between the price of a product and the quantity supplied by producers.

• The demand curve shows the relationship between the price of a product and the quantity demanded by consumers.

• The demand curve is a graph that represents the total revenue earned by a company.

• The demand curve illustrates the impact of government regulations on the price of a product.

What factors can cause a shift in the supply curve?

• Changes in production costs, technology, government policies, and the number of suppliers in the market

• Political stability, advertising, and product quality

• Currency exchange rates, international trade, and inflation

• Changes in demand, weather, and consumer preferences

Explain the concept of elasticity of demand.

• Elasticity of demand is the measure of how much the quantity demanded of a good responds to a change in quantity

• Elasticity of demand is the measure of how much the quantity demanded of a good responds to a change in price.

• Elasticity of demand measures the temperature of the market

• Elasticity of demand is the measure of how much the quantity supplied of a good responds to a change in price

What is the difference between a change in quantity demanded and a change in demand?

• A change in quantity demanded refers to a movement along the demand curve due to a change in price, while a change in demand refers to a shift in the entire demand curve due to factors other than price.

• A change in quantity demanded is a shift in the entire demand curve, while a change in demand is a movement along the demand curve due to a change in price.

• A change in quantity demanded is a long-term shift in the demand curve, while a change in demand is a short-term movement along the demand curve.

• A change in quantity demanded is caused by a change in consumer income, while a change in demand is caused by a change in the price of related goods.

How does the law of supply and demand affect the pricing of goods and services?

• It only affects the quantity demanded

• It determines the equilibrium price where the quantity demanded equals the quantity supplied.

• It has no impact on pricing

• It only affects the quantity supplied