Supply and Demand Quiz

What is market equilibrium in the context of supply and demand?

• The point where the quantity of goods supplied is less than the quantity demanded.

• The point where the quantity of goods supplied equals the quantity demanded.

• The point where the price of goods is at its highest.

• The point where no goods are exchanged in the market.

Which of the following is a factor that can affect supply?

• Consumer preferences

• Technology advancements

• Income levels of consumers

• Price of related goods

What does the law of supply and demand state?

• As the price increases, the quantity demanded decreases, and the quantity supplied increases.

• As the price increases, both the quantity demanded and supplied decrease.

• As the price decreases, the quantity demanded and supplied both increase.

• As the price decreases, the quantity demanded decreases, and the quantity supplied increases.

What is consumer surplus?

• The result of quantity supplied being greater than quantity demanded.

• The amount a consumer actually pays minus the amount they are willing to pay.

• The total revenue a company makes from selling its products.

• The cost of producing goods minus the price at which they are sold.

Which of the following would likely cause a shift in the supply curve to the right?

• An increase in the cost of raw materials.

• A decrease in the number of producers.

• A decrease in the cost of inputs.

• A decrease in consumer demand for the product.

What happens to the market equilibrium price if there is an increase in demand, but supply remains constant?

• It decreases.

• It remains the same.

• It increases.

• It is unpredictable.

Which of the following is an example of a price floor?

• Rent Control

• Subsidy for farmers
• Tax on imported goods
• Minimum wage

An example of a price ceiling is

• Tax subsidy for farmers
• Minimum wage increase
• Rent control
• Universal basic income

How does improved labor productivity affect a supply curve?

• Shifts the supply curve to the left.

• Shifts the supply curve to the right.

• Makes the supply curve steeper.

• Makes the supply curve flatter.

How does an increase in taxes on goods affect the supply curve?

• It shifts the supply curve to the right.

• It shifts the supply curve to the left.

• It does not affect the supply curve.

• It makes the supply curve more elastic.