Economics Quiz on Supply and Demand

What does 'supply' refer to in economics?

• The price of goods and services

• The amount of goods and services sellers produce at a certain price

• The amount of goods and services consumers want to buy

• The total number of consumers in the market

If the price of coffee increases to $8, how many cups are likely to be demanded?

• 100 cups

• 10 cups

• 30 cups

• 150 cups

What happens to the demand for coffee if the price drops to $1 per cup?

• Demand increases to 150 cups

• Demand decreases to 50 cups

• Demand remains the same at 100 cups

• Demand decreases to 10 cups

Why does the supply curve usually slope upward?

• Because the lower the price, the less supply

• Because the higher the price, the more supply

• Because the lower the price, the more supply

• Because the higher the price, the less supply

At what price do the supply and demand curves meet in the coffee shop example?

• $8

• $12

• $1

• $3

What external factor caused the shop owner to increase the price of coffee to $4.5?

• A poor harvest leading to a low supply of beans

• A decrease in the number of customers

• A decrease in the cost of beans

• An increase in the number of coffee shops

What is the result of an emergent order in a free market?

• A fixed price set by the government

• A decrease in the number of suppliers

• An unspoken agreement between sellers and buyers

• A fixed quantity of goods supplied

What happens to the demand curve if people become more health-conscious and think coffee is bad?

• The demand curve becomes a straight line

• The demand curve remains the same

• The demand curve shifts upward

• The demand curve shifts downward

What is the difference between 'quantity demanded' and 'demand'?

• 'Quantity demanded' changes with price, 'demand' changes with environment

• 'Quantity demanded' changes with environment, 'demand' changes with price

• Both change only with environment

• Both change only with price

What is the final price of a good in a free market a result of?

• Fixed demand

• Emergent order

• Fixed supply

• Government regulations