Economics Quiz: Supply and Demand

What is the relationship between price and the quantity that consumers are willing and able to buy according to the demand curve?

• Exponential relationship

• No relationship

• Inverse relationship

• Direct relationship

What is the first reason for the law of demand?

• Price effect

• Income effect

• Law of diminishing marginal utility

• Substitution effect

Which of the following is NOT a shifter or determinant of demand?

• Taste and preferences

• Price of substitutes and complements

• Price of the product itself

• Change in expectations

What is the reason for the positive relationship between price and the quantity supplied according to the supply curve?

• Making profit

• Income effect

• Law of diminishing marginal utility

• Substitution effect

Which of the following is a shifter of supply related to changes in technology?

• Change in resources or inputs price

• Change in technology

• Number of sellers

• Government actions

What happens when the quantity demanded equals the quantity supplied in a market?

• Equilibrium

• Surplus

• Shortage

• Disequilibrium

How does an increase in demand affect the equilibrium price and quantity?

• Price and quantity both decrease

• Price decreases, quantity increases

• Price increases, quantity decreases

• Price and quantity both increase

What is the term used by economists to describe the market clearing price where quantity demanded equals quantity supplied?

• Price control

• Market equilibrium

• Demand shift

• Market surplus

What is the main advice given to students regarding understanding supply and demand?

• Ignore the concepts

• Memorize all the shifters

• Don't take notes while watching the video

• Take notes while watching the video

What is the next step after learning about supply and demand in economics?

• Forget about economics

• Take a break

• Practice different scenarios of shifting demand and supply

• Watch more videos