Demand and Supply Quiz

Demand refers to

• the total amount of a specific good or service that is available to consumers

• a consumer's ability & willingness to pay a price for a specific good or service

• a state where economic forces such as supply and demand are balanced

• any structure that allows buyers & sellers to exchange goods & services

Refer to the demand schedule above. At a price of $3, what is the quantity demanded for coconuts?

• 10

• 8

• 6

• 4

Refer to the demand schedule above. What conclusion can be made about the relationship between price and quantity demanded?

• When price decreases, the quantity demanded increases

• When price increases, the quantity demanded increases

• When price decreases, the quantity demanded decreases

• When price increases, the quantity demanded stays the same

Which of the following is a shifter of demand?

• Availability of Resources

• New Technology

• Consumer Tastes & Preferences

• Government Subsidies

Refer to the graph above. If there is an overall increase in the taste and preference for coconuts, then the movement that would take place in the model could be:

• A to C

• B to A

• C to A

• B to E

Refer to the graph above. If there is an increase in the price of coconuts, then the movement that would take place in the model could be:

• A to C

• B to A

• C to A

• B to E

Supply is best defined as

• the amount of goods and services sellers are willing and able to produce at a given price

• a state where economic forces such as supply and demand are balanced

• any structure that allows buyers & sellers to exchange goods & services

• a variety of different resources available

Refer to the supply schedule above. At a price of $4, what is the quantity supplied for oranges?

• 5

• 10

• 15

• 20

Refer to the supply schedule above. What conclusion can be made about the relationship between price and quantity supplied?

• When price decreases, the quantity supplied increases

• When price increases, the quantity supplied increases

• When price increases, the quantity supplied decreases

• When price increases, the quantity supplied stays the same

Which of the following is a shifter of supply?

• Price of Complementary Goods

• Price and availability of resources

• Tastes & Preferences

• Price of Substitute Goods