E.09: Supply and Demand Quiz

What does the law of supply and demand state?

• The price of a good or service is determined by the relationship between the quantity supplied and the quantity demanded.

• The price of a good or service is determined by the cost of production.

• The price of a good or service is determined by government regulations.

• The price of a good or service is determined by consumer preferences.

What does the law of supply state?

• The quantity supplied is determined solely by consumer demand.

• The quantity supplied is not affected by changes in price.

• As the price of a good or service increases, the quantity supplied will also increase.

• As the price of a good or service increases, the quantity supplied will decrease.

What does the law of demand state?

• The quantity demanded is not affected by changes in price.

• The quantity demanded is determined solely by producer supply.

• As the price of a good or service increases, the quantity demanded will also increase.

• As the price of a good or service increases, the quantity demanded will decrease.

How is the relationship between price and quantity supplied typically represented?

• By a vertical line.

• By an upward-sloping curve.

• By a horizontal line.

• By a downward-sloping curve.

How is the relationship between price and quantity demanded typically represented?

• By an upward-sloping curve.

• By a horizontal line.

• By a downward-sloping curve.

• By a vertical line.

What happens at the equilibrium point in a market?

• The price is fixed by the government.

• The quantity supplied is equal to the quantity demanded.

• The quantity demanded is greater than the quantity supplied.

• The quantity supplied is greater than the quantity demanded.

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

• The quantity supplied will fluctuate randomly.

• The quantity supplied will decrease.

• The quantity supplied will remain the same.

• The quantity supplied will increase.

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

• The quantity demanded will decrease.

• The quantity demanded will remain the same.

• The quantity demanded will increase.

• The quantity demanded will fluctuate randomly.

What is the main factor that influences the quantity of a good or service that producers are willing to supply?

• The cost of production

• Government regulations

• Consumer preferences

• The quantity demanded by consumers

What is the main factor that influences the quantity of a good or service that consumers are willing to demand?

• Consumer preferences

• Producer supply

• The cost of production

• Government regulations