12th Grade Economics Quiz: Supply, Demand & Cost of Production

What is "demand"?

• The number of sellers in a market

• How much of a product people want and can buy

• How much of a product producers make

• The price of a product

What happens to demand when the price of a product goes down?

• Demand stays the same

• Demand goes down

• Demand goes up

• Demand disappears

What is "supply"?

• The amount of a product that people want

• The amount of a product that companies are willing to sell

• How much people need something

• A list of prices

What happens to supply when the price goes up (assuming other things stay the same)?

• Supply goes down

• Supply goes up

• Supply stays the same

• Supply disappears

What is the "equilibrium price"?

• The highest possible price for a product

• A price that no one will pay

• Where supply and demand are equal

• The lowest price for a product

What causes a movement along the demand curve?

• Change in income

• Change in price

• Change in taste

• Change in weather

If a new technology makes it cheaper to produce goods, what happens to supply?

• It increases

• It decreases

• It stays the same

• It stops

Which of these would likely increase the demand for electric cars?

• Higher gas prices

• A decrease in electricity prices

• A new law giving tax breaks for electric cars

• All of the above

What is one reason the supply of a product might decrease?

• A new machine makes production faster

• The price of raw materials goes up

• More sellers enter the market

•  Demand increases

If there is too much of a product in the market, what is it called?

• Scarcity

• Surplus

• Shortage

• Demand