Demand and Supply MCQs for SS2

Which of the following factors does NOT affect the demand for a good?

• Price of the good

• Price of substitute goods

• Technology used in production

• Consumer income

When the price of a product falls, the quantity demanded usually:

• Increases

• Decreases

• Remains constant

• Becomes zero

A shift in the demand curve to the right indicates:

• An increase in demand

• A decrease in demand

• A decrease in supply

• An increase in price

Which of the following is likely to cause a shift in the supply curve to the left?

• Improvement in technology

• Increase in production costs

• A fall in the price of substitute goods

• Increase in consumer income

The law of demand states that:

• As price increases, demand increases

• As price increases, demand decreases

• As demand increases, price decreases

• Demand and price are unrelated

If two goods are complementary, a rise in the price of one will:

• Increase the demand for the other

• Decrease the demand for the other

• Not affect the demand for the other

• Increase the supply of the other

A movement along the demand curve is caused by:

• A change in the price of the good

• A change in consumer income

• A change in the price of a substitute good

• A change in consumer preferences

Which of the following best describes equilibrium price?

• The price at which demand is highest

• The price at which supply is highest

• The price at which quantity demanded equals quantity supplied

• The price at which sellers maximize profit

A rightward shift in the supply curve is likely to occur due to:

• A decrease in production costs

• A decrease in consumer demand

• An increase in taxes

• An increase in the price of raw materials

Which of the following is NOT a factor that can shift the demand curve?

• Changes in consumer preferences

• Changes in the price of the good itself

• Changes in population size

• Changes in the price of related goods