Economics Quiz: Demand and Supply

What does the demand curve represent?

• Relationship between price and quantity produced

• Relationship between price and quantity demanded

• Relationship between price and quantity supplied

• Relationship between price and quantity sold

What is the law of demand?

• Higher price leads to lower quantity demanded

• Higher price leads to higher quantity demanded

• Lower price leads to lower quantity demanded

• Lower price leads to higher quantity demanded

What is quantity supplied?

• Total number of units consumers are willing to buy at a given price

• Total number of units producers are willing to offer for sale at a given price

• Total number of units consumers wish to purchase at a given price

• Total number of units producers are willing to supply at a given price

What is the law of supply?

• Lower price leads to higher quantity supplied

• Higher price leads to higher quantity supplied

• Lower price leads to lower quantity supplied

• Higher price leads to lower quantity supplied

What is a supply curve?

• Graphic representation of the relationship between price and quantity supplied

• Table showing quantity demanded for a certain good at a range of prices

• Total number of units of a good or service consumers wish to purchase at a given price

• Relationship between price and quantity of a good or service producers are willing to offer for sale

What is the difference between a movement along the supply curve and a shift in the supply curve?

• A movement along the supply curve is caused by a change in price, while a shift in the supply curve is caused by a change in factors other than price

• A movement along the supply curve is caused by a change in factors other than price, while a shift in the supply curve is caused by a change in price

• Both a movement along the supply curve and a shift in the supply curve are caused by changes in price

• Both a movement along the supply curve and a shift in the supply curve are caused by changes in factors other than price

What is the concept of equilibrium price and quantity in a market?

• Equilibrium price is the price at which quantity demanded equals quantity supplied, and equilibrium quantity is the quantity at that price

• Equilibrium price is the price at which quantity demanded is greater than quantity supplied, and equilibrium quantity is the quantity at that price

• Equilibrium price is the price at which quantity demanded is less than quantity supplied, and equilibrium quantity is the quantity at that price

• Equilibrium price is the price at which quantity demanded and quantity supplied are unrelated, and equilibrium quantity is the quantity at that price

What factors can cause a shift in the demand curve?

• Changes in income, preferences, and prices of related goods

• Changes in supply, technology, and government regulations

• Changes in population, weather, and natural disasters

• Changes in production costs, labor market conditions, and inflation rates

What is the concept of price elasticity of demand?

• Price elasticity of demand measures the responsiveness of quantity demanded to a change in price

• Price elasticity of demand measures the total revenue generated from a product

• Price elasticity of demand measures the total cost of production for a product

• Price elasticity of demand measures the market share of a product

What is the concept of price elasticity of supply?

• Price elasticity of supply measures the responsiveness of quantity supplied to a change in price

• Price elasticity of supply measures the total revenue generated from a product

• Price elasticity of supply measures the total cost of production for a product

• Price elasticity of supply measures the market share of a product