Supply and Demand Quiz

What is the main model of price determination used in economic theory?

• Indifference curve

• Supply curve

• Demand curve

• Equilibrium price

What does the demand curve represent?

• Effect of non-price factors on demand

• Willingness of producers to sell more at higher prices

• Relationship between price and quantity demanded

• Relationship between price and quantity supplied

What causes a shift in the demand curve?

• Changes in production technology

• Changes in the price of the commodity

• Changes in non-price factors

• Changes in the prices of substitute products

What is represented on the vertical axis of a supply curve?

• Quantity supplied

• Income of consumers

• Price

• Quantity demanded

What does an upward-sloping supply curve indicate?

• Relationship between price and quantity demanded

• Willingness of consumers to purchase more at lower prices

• Willingness of producers to sell more at higher prices

• Effect of non-price factors on supply

What causes a shift in the supply curve?

• Changes in the prices of substitute products

• Changes in production technology

• Changes in non-price factors

• Changes in the price of the commodity

What is the resulting price called when supply and demand are in equilibrium?

• Producer price

• Market price

• Consumer price

• Equilibrium price

What does the quantity of a commodity supplied by producers equal in equilibrium?

• Quantity offered by producers

• Maximum quantity that could be purchased

• Quantity supplied by producers

• Quantity demanded by consumers

What is the relationship between the quantity of a commodity that producers wish to sell and the quantity that consumers wish to buy?

• Demand and equilibrium

• Supply and demand

• Consumer preferences

• Price determination

What is the price of a commodity determined by in a market?

• Government regulations

• Interaction of supply and demand

• Demand only

• Supply only