Demand and Supply

What is the quantity of a good that consumers are willing and able to buy at a given price?

• Quantity demanded

• Quantity supplied

• Price

• Equilibrium price

What is the quantity of a good that producers are willing and able to sell at a given price?

• Quantity demanded

• Quantity supplied

• Price

• Equilibrium price

At equilibrium, what is the relationship between quantity demanded and quantity supplied?

• Equal

• Greater

• Less

• Undefined

What is a measure of how responsive the quantity demanded of a good is to a change in its price?

• Price elasticity of demand

• Income elasticity of demand

• Cross elasticity of demand

• Unit elasticity

What is a measure of how responsive the quantity demanded of a good is to a change in consumer income?

• Price elasticity of demand

• Income elasticity of demand

• Cross elasticity of demand

• Unit elasticity

What is a measure of how responsive the quantity demanded of one good is to a change in the price of another good?

• Price elasticity of demand

• Income elasticity of demand

• Cross elasticity of demand

• Unit elasticity

Which of the following goods is likely to have a low price elasticity of demand?

• Luxury goods

• Necessities

• Both luxury goods and necessities

• None of the above

Which of the following goods is likely to have a positive cross elasticity of demand with butter?

• Margarine

• Bread

• Milk

• None of the above

A change in the price of a good will cause a shift in the demand curve if:

• All other factors remain constant.

• There is a change in consumer income, tastes, or prices of related goods.

• Both all other factors remain constant and there is a change in consumer income, tastes, or prices of related goods.

• None of the above

Which of the following goods is likely to have a high price elasticity of demand?

• Luxury goods

• Necessities

• Both luxury goods and necessities

• None of the above