Supply and Demand

What is the law of demand?

• As price increases, demand remains constant
• As income increases, demand decreases
• As price increases, demand decreases
• As price decreases, demand remains constant

What does a rightward shift in the demand curve indicate?

• Increase in quantity supplied at all prices
• Decrease in demand at all prices
• Decrease in quantity demanded at all prices
• Increase in demand at all prices

Which of the following factors can cause a change in supply?

• Population changes
• Consumer preferences
• Seasonal trends
• Changes in technology

What is equilibrium price?

• The price at which supply equals demand
• The highest price consumers are willing to pay
• The price at which demand exceeds supply
• The lowest price suppliers are willing to accept

What effect does an increase in supply have on equilibrium price?

• It lowers the equilibrium price
• It raises the equilibrium price
• It has no effect on equilibrium price
• It causes demand to decrease

What is meant by a surplus in a market?

• There is no change in price
• Quantity supplied exceeds quantity demanded
• Supply and demand are perfectly balanced
• Quantity demanded exceeds quantity supplied

Which of the following is a determinant of demand?

• Consumer income levels
• Input costs
• Technology advancements
• Government regulations

What does the term 'inelastic demand' refer to?

• Demand is sensitive to consumer preferences
• Demand increases as price decreases
• Demand changes significantly with price changes
• Demand remains unchanged despite price changes

What happens when there is a decrease in demand?

• Price tends to rise
• Price tends to fall
• Equilibrium quantity increases
• Supply remains constant

Which statement best describes 'demand'?

• The willingness and ability to purchase a good
• The amount of a good available in the market
• The regulation of price in a market
• The total cost of producing a good