Economics Supply and Demand Quiz

Goods are described as inferior if their demand

• decreases as price falls

• increases as income rises

• decreases as income increases

• increases as price increases

An increase in supply means that

• more is sold at different prices

• more is sold at the price

• there is a leftward shift of the supply curve

• there is a movement along the supply curve

If the increase in the price of crude oil led to an increase in the price of kerosene and grease , then kerosene and grease are in

• joint supply

• competitive supply

• market supply

• composite supply

If an increase in the supply of beef increased the supply of hides, then beef and hides are in

• competitive supply

• joint supply

• composite supply

• joint demand

If a beef market is in equilibrium at ₦4 per kg, an increase in price to ₦6 per kg may cause

• surplus in the market

• shortage in the market

• black market to come into operation

• rationing to be introduced

The demand for coffee and tea is

• joint

• competitive

• composite

• derived

What effect will an increase in the supply of fish have on the meat market?

• a fall in equilibrium price and quantity

• an increase in equilibrium price and quantity

• an increase in equilibrium price and a fall in quantity

• both equilibrium price and quantity remain unchanged

Which of the following factors is not a condition for a change in supply of a commodity?

• improved technology

• cost of production

• the price of the commodity

• government tax policy

Supply of agricultural products is likely to be elastic in the

• intermediate period

• long-run

• market period

• short-run

Two commodities X and Y are in joint supply when

• X is a by-product of Y

• X and Y are produced by the same firm

• increase in quantity of X leads to decrease in Y

• X and Y cannot be produced in the same process