WorksheetsDemand, Supply & Equilibrium Quiz
Total questions: 46
Worksheet time: 23mins
What does the law of demand state?
Price ↑, Quantity demanded ↑
Price ↑, Quantity demanded ↓
Price ↓, Quantity demanded ↓
Price remains constant, Quantity demanded varies
Which of the following causes a movement along the demand curve?
Change in price
Change in preferences
Change in income
Change in number of buyers
How does an increase in income affect the demand for normal goods?
Increases demand
Decreases demand
No change in demand
Shifts demand to the left
Which of these is an example of a substitute good?
Tennis rackets and tennis balls
Coca-Cola and Pepsi
Bread and butter
Laptops and chargers
What happens when buyers expect future prices to increase?
Current demand decreases
Current demand increases
Future demand decreases
Future supply increases
Which curve represents the summation of all individual demand curves?
Individual demand curve
Market demand curve
Aggregate supply curve
Individual supply curve
What is the shape of the demand curve due to the substitution effect and diminishing marginal utility?
Upward sloping
Downward sloping
Horizontal
Vertical
What does the law of supply state?
Price ↑, Quantity supplied ↑
Price ↑, Quantity supplied ↓
Price ↓, Quantity supplied ↑
Price and quantity supplied are unrelated
Which of these factors directly increases supply?
Increase in input prices
Increase in taxes
Technological advancement
Decrease in subsidies
How does an increase in the number of sellers affect supply?
Supply decreases
Supply remains constant
Supply increases
Supply curve shifts leftward
Which government policy reduces supply?
Subsidy increase
Quotas
Relaxing licensing restrictions
Decreasing input costs
What happens when producers expect prices to rise in the future?
Current supply increases
Current supply decreases
Future supply decreases
Price equilibrium falls
What is the effect of removing a subsidy on supply?
No effect
Increases supply
Decreases supply
Shifts demand curve rightward
Which curve represents the summation of individual supply curves?
Aggregate demand curve
Market supply curve
Producer curve
Individual demand curve
Which of these is not a determinant of supply?
Input prices
Preferences
Technology
Taxes
What is market equilibrium?
Quantity supplied > Quantity demanded
Quantity supplied < Quantity demanded
Quantity supplied = Quantity demanded
Prices fluctuate constantly
What results from excess demand?
Surplus
Shortage
Price decrease
Supply increase
What is the effect of a surplus in the market?
Prices increase
Prices decrease
Quantity demanded decreases
Demand shifts leftward
What does the intersection of supply and demand curves represent?
Disequilibrium
Shortage
Surplus
Equilibrium price and quantity
What happens to equilibrium price when demand increases?
Price decreases
Price increases
Price remains constant
Price fluctuates randomly
What is consumer surplus?
Difference between price received and minimum price sellers accept
Difference between maximum price buyers will pay and actual price paid
Total production cost of goods
Market price of goods
What happens to consumer surplus when prices decrease?
Surplus increases
Surplus decreases
Surplus remains unchanged
Supply curve shifts leftward
What is producer surplus?
Difference between total supply and total demand
Difference between market price and production cost
Excess demand in the market
Price equilibrium
Which of these scenarios increases producer surplus?
Market price decreases
Input costs increase
Market price increases
Demand shifts leftward
How is total surplus calculated?
Market price minus total production cost
Consumer surplus minus producer surplus
Sum of consumer and producer surplus
Difference between supply and demand
What causes a shift in the demand curve to the right?
Increase in price
Increase in preferences
Decrease in income for normal goods
Decrease in number of buyers
What causes a shift in the supply curve to the left?
Decrease in taxes
Decrease in input costs
Quotas imposed by the government
Technological advancements
What happens when both demand and supply increase simultaneously?
Price always increases
Price always decreases
Quantity increases, but effect on price is uncertain
Quantity decreases, but effect on price is uncertain
Which good is an example of a complement?
Tea and coffee
Bread and butter
Apples and oranges
Cars and bicycles
What happens to equilibrium quantity when demand increases and supply decreases?
Quantity increases
Quantity decreases
Quantity remains constant
Effect is uncertain
The law of demand states that a decrease in the price of a good:
decreases the quantity supply of that good
increases the supply of that good
increases the quantity demanded for that good
decreases the demand for that good
A change in the price of a good or service leads to a ________ that leads to a ________.
change in demand; movement along the demand curve
change in demand; shift in the demand curve
change in quantity demanded; shift of the demand curve
change in quantity demanded; movement along the demand curve
Which factors below are holding constant when derived demand curve?
income, tastes, and the prices of other goods.
income, tastes, and the price of the good.
only income and tastes.
only tastes and the price of other goods.
If a decrease in consumer income leads to an increase in the demand for good Y, then good Y is
an inferior good.
a normal good.
substitute good.
complementary good.
In response to news reports that taking oil fish daily can reduce an individual's risk of a stroke, there will most likely be a(n)
increase in the quantity demanded of a fish oil.
decrease in the supply of fish oil.
increase in the demand for fish oil.
increase in the supply of fish oil.
A change in future price, prices of other goods or services, income or preferences, leads to a ________ that causes a ________.
change in demand; shift of the demand curve
change in quantity demanded; movement along the demand curve
change in demand; movement along the demand curve
change in quantity demanded; shift of the demand curve
Suppose the demand for good X goes down when the price of good Y goes down. We can say that these two goods are
unrelated goods.
substitutes.
complements.
perfect substitutes.
If the demand curve for a good shift leftward,
demand is greater at each price.
quantity demanded is greater at each price.
quantity demanded remains constant at each price.
quantity demanded is less at each price.
Which of the following shifts the demand for TV set to the right?
a decrease in the price of TV set.
an increase in the price of TV set.
an increase in consumer income if TV set is a normal good
a decrease in consumer income if TV set is a normal good.
Pepsi and cola are generally considered ________, an increase in the price of pepsi should ________ the demand for cola, ceteris paribus.
complements; increase
substitutes; decrease
substitutes; increase
complements; decrease
What is the equilibrium quantity?
Quantity at which buyers and sellers agree on price
Quantity demanded minus quantity supplied
Quantity demanded equals quantity supplied
Maximum quantity supplied
What occurs when there is excess supply in the market?
Shortage
Surplus
Equilibrium
Disequilibrium
At what price level does a surplus occur?
Above equilibrium price
Below equilibrium price
At equilibrium price
At any price
What condition describes a market shortage?
Quantity supplied is greater than quantity demanded
Quantity demanded is greater than quantity supplied
Price is above equilibrium
Supply equals demand
Disequilibrium in a market can occur when:
Price is at equilibrium
Quantity demanded equals quantity supplied
There is either surplus or shortage
Both supply and demand are constant
What is a disequilibrium price?
Price above equilibrium
Price below equilibrium
Price other than equilibrium price
Price that leads to equilibrium
