Supply and Demand Quiz

What is the definition of supply?

• The amount of product customers want to buy

• The amount of product a business is willing to provide

• The price at which goods are sold

• The total revenue generated by a business

What does a supply curve represent?

• The relationship between price and quantity supplied

• The market clearing price

• The relationship between demand and quantity demanded

• The total cost of production

What is the market clearing price?

• The price at which supply exceeds demand

• The highest price consumers are willing to pay

• The price at which demand exceeds supply

• The equilibrium price where supply equals demand

What happens when there is a surplus in the market?

• Prices are at equilibrium

• There is no effect on the market

• Supply exceeds demand

• Demand exceeds supply

What effect does a price increase have on the supply curve?

• It has no effect on the supply curve

• It causes movement along the supply curve

• It shifts the supply curve to the left

• It shifts the demand curve to the right

Which of the following is not a non-price factor that affects supply?

• Cost of production

• Change in price

• Consumer preferences

• Price of substitutes

What happens to the supply curve when there is an increase in supply?

• It remains unchanged

• It shifts to the left

• It becomes a demand curve

• It shifts to the right

What is the effect of a price decrease on the demand curve?

• It has no effect on the demand curve

• It causes movement along the demand curve

• It shifts the demand curve to the right

• It shifts the demand curve to the left

Which of the following is a non-price factor that affects demand?

• Price of complements

• All of the above

• Consumer income

• Price of substitutes

What does a decrease in demand due non-price factors result in?

• No change in the demand curve

• A shift to the left of the demand curve

• A shift to the right of the demand curve

• An increase in supply