Demand and Supply Quiz

When the price of a good increases, what happens to its demand, ceteris paribus?

• Demand decreases

• Demand increases

• Demand remains constant

• Demand becomes elastic

Which of the following is NOT other factors that determine the demand?

• Price of related goods

• Income of consumers

• Future expectations

• Cost of production

When supply increases while demand remains constant, what happens to the equilibrium price and quantity?

• Price increases, quantity decreases

• Price decreases, quantity increases

• Price and quantity both increase

• Price and quantity both decrease

A technological advancement that lowers production costs will likely result in:

• Decreased supply

• Increased demand

• Increased supply

• Decreased demand

When both demand and supply decrease, what happens to the equilibrium quantity?

What factor could shift both the demand and supply curves simultaneously?

• Changes in consumer tastes

• Changes in technology

• Changes in the price of inputs

• Changes in government regulations

The point where the supply and demand curves intersect is known as:

• Market equilibrium

• Market surplus

• Market shortage

• Market disequilibrium

Which of the following is NOT a factor that can shift the supply curve?

• Changes in production technology

• Changes in consumer income

• Changes in input prices

• Changes in government regulations

Which of the following is not a characteristic of a market in equilibrium?

Which of the following is a non-price determinant of supply?

• Price of the product

• Input prices

• Consumer preferences

• Government regulations