12IB Supply and Demand Quiz

Which of these is not a non-price determinant of supply?

• Efficiency

• Consumer preferences

• Technology

• Costs of production

What is the relationship between demand and quantity demanded?

• Demand is the quantity demanded at a single price

• Demand is the same as quantity demanded

• Demand is the intersection of price and quantity demanded

• Demand is the quantity demanded at every price

What effect does a decrease in costs of production have in a market

• It will lead to a decrease in demand

• It will lead to an increase in demand

• It will lead to a decrease in supply

• It will lead to an increase in supply

What is the effect on equilibrium price when there is an increase in demand?

• Equilibrium price will increase
• Equilibrium price will fluctuate
• Equilibrium price will remain the same
• Equilibrium price will decrease

At its original equilibrium price, what will occur when there is a decrease in demand?

• There will be a shortage of the product at the original equilibrium price

• There will be a surplus of the product at the original equilibrium price

• The price will remain the same despite the decrease in demand

• The demand will increase to match the original equilibrium price

Which of these is not a non-price determinant of demand?

• Consumer Taste

• Population of Consumers in the Market

• Price of Substitute Goods

• Price of the Product

Which of these goods may have a vertical (perfectly inelastic) supply curve?

• Generic household items
• Commonly available electronics
• Rare and unique artwork
• Mass-produced clothing

Which of these is not a non-price determinant of supply?

• Firms expectations of price

• Technology

• Price of the product
• Taxes/Subsides

How does a market return to equilibrium after a shortage?

• Producers will bid up the price

• Consumers will buy excess stock

• Producers will sell excess stock

• Consumers will bid up the price

What effect might a rise in the price of bacon have on the market for eggs?

• The rise in the price of bacon will cause the market for eggs to become more competitive

• The rise in the price of bacon will increase the supply of eggs

• The rise in the price of bacon will have no effect on the market for eggs

• The rise in the price of bacon will decrease the demand for eggs