Supply and Demand Quiz

What is the reason for the downward sloping demand curve on a supply and demand chart?

• As prices go down, demand goes up

• As prices go up, demand goes down

• As prices go up, demand goes up

• As prices go down, demand goes down

What is the reason for the upward sloping supply curve on a supply and demand chart?

• As prices go up, supply goes down

• As prices go down, supply goes down

• As prices go up, supply goes up

• As prices go down, supply goes up

What is the equilibrium point on a supply and demand chart?

• Where demand and supply do not meet

• Where demand and supply meet with no shortage or surplus

• Where there is a surplus

• Where there is a shortage

What happens when the price is set below the equilibrium on a supply and demand chart?

• There is no change in price

• There is no change in quantity

• There is a shortage

• There is a surplus

What happens when the price is set above the equilibrium on a supply and demand chart?

• There is a surplus

• There is a shortage

• There is no change in quantity

• There is no change in price

What would happen to the market for 4k TVs if consumer income increases?

• Demand would decrease

• Supply would decrease

• Supply would increase

• Demand would increase

What would happen to the market for 4k TVs if the government puts more regulations on input costs?

• Supply would decrease

• Supply would increase

• Demand would increase

• Demand would decrease

Which of the following will shift the demand curve for an inferior good to the right?

• A decrease in the price of a substitute good

• An increase in income

• A decrease in income

• An increase in the price of a substitute good

What is the reason for the increase in demand for an inferior good when there is a decrease in income?

• People have to be more frugal with their money

• People can afford better quality goods

• People prefer higher priced items

• People have more money to spend

What would be the price and quantity at the equilibrium point on a supply and demand chart?

• $2.50 and 35 units

• $2 and 40 units

• $5 and 60 units

• $3 and 30 units