Economics Quiz

In general, if the price of a good or service goes down, what happens to the demand for that good or service?

• Demand goes up

• Demand goes down

• Demand stays the same

• None of the above

What does the graph below represent?

• Change in quantity supplied

• Decrease in supply

• Increase in supply

• Decrease in supply demanded

Given the graph that follows. What will happen to equilibrium price and quantity?

• Price will increase and quantity increase

• Price Increase & Quantity decrease

• Price decrease & Quantity decrease

• Price decrease & Quantity Increase

Given the graph below, how Many cup holders are producers willing to supply at a price of $3.00?

• 3000

• 4000

• 5000

• 7000

What does the graph above show?

• Shortage

• Supply table

• Surplus

• Equilibrium

The price ceiling shown below,

• Causes a shortage of 45 units

• Is not binding because it is set below the equilibrium price

• Makes it necessary for sellers to ration the good

• None of the above

Point at which supply and demand come together

• Price ceiling

• Excess demand

• Disequilibrium

• Equilibrium

When quantity demanded is more than quantity supplied, we have what is called?

• Excess demand

• Disequilibrium

• Price ceiling

• Equilibrium

When quantity supplied is not equal to quantity demanded

• Disequilibrium

• Excess demand

• Price ceiling

• Equilibrium

Legal maximum that can be charged for a good

• Price ceiling

• Equilibrium

• Excess demand

• Disequilibrium