Supply and Demand Quiz

In a local fish market, the price of fish is set at AED 15 per kg, and the quantity sold equals the quantity demanded. What is this situation called?

• Market surplus

• Market equilibrium

A seller increases the price of rice from AED 10 to AED 15 per kg, but now fewer buyers are purchasing it, leaving stock unsold. Is the market in equilibrium?

• Yes

• No

A new health study increases the popularity of organic fruits. What is the likely effect?

• Demand increases

• Supply decreases

If the government offers subsidies on electric cars, what happens to their supply?

• It increases

• It decreases

The UAE government sets a maximum price for milk to make it affordable for everyone. What is this called?

• Price ceiling

• Price floor

A government policy requires fishermen to limit the number of fish they catch to protect marine life. What is this an example of?

• Price control

• Quantity control

When the price of cinema tickets increases, fewer people buy them. This means the demand for tickets is:

• Elastic

• Inelastic

If the price of petrol rises, but people continue to buy it for daily use, petrol is:

• Elastic

• Inelastic

If a customer is willing to pay AED 50 for a book but buys it for AED 30, the AED 20 difference is:

• Producer surplus

• Consumer surplus

A farmer is willing to sell oranges for AED 3 per kg but sells them for AED 5 per kg. What is this AED 2 called?

• Consumer surplus

• Producer surplus