Economics of Supply and Demand Quiz

Which of the following factors would cause a shift in the supply curve for wheat?

• A change in the price of wheat

• A technological advancement in wheat farming

• A change in consumer preferences for wheat products

• A change in the price of rice, a substitute good

What happens to the price equilibrium when there is an increase in demand, assuming supply remains constant?

• It decreases

• It increases

• It remains unchanged

• It becomes unpredictable

If the current market price is below the equilibrium price, what condition is the market experiencing?

• Surplus

• Equilibrium

• Shortage

• Price ceiling

What is the formula to calculate shortage?

• Quantity demanded - Quantity supplied

• Quantity supplied - Quantity demanded

• (Price demanded - Price supplied) / Price demanded

• (Price supplied - Price demanded) / Price supplied

Which of the following would cause a leftward shift in the supply curve of oranges?

• A decrease in the price of oranges

• An improvement in orange harvesting technology

• An increase in the cost of fertilizers

• A decrease in the price of apples, a substitute good

How is price equilibrium achieved in a market?

• When the government sets the price for goods and services

• When the quantity demanded equals the quantity supplied

• When there is a surplus of goods

• When there is a shortage of goods

What effect does a subsidy on production have on the supply curve?

• It causes the supply curve to shift leftward

• It causes the supply curve to shift rightward

• It has no effect on the supply curve

• It causes the supply curve to become more elastic

If a market is experiencing a surplus, what is likely to happen to the market price?

• It will increase

• It will decrease

• It will remain constant

• It will become volatile

What does a rightward shift in the demand curve indicate?

• A decrease in consumer demand

• An increase in consumer demand

• A decrease in product price

• An increase in product price

Which of the following is a factor that can shift the demand curve to the right?

• A decrease in the price of the good

• An increase in the income of consumers

• An increase in the price of substitute goods

• Both B and C are correct