NEW
Font size
WorksheetsDemand and Supply Quiz
Total questions: 51
Worksheet time: 38mins
Which of the following would cause a movement along the demand curve?
A change in income
A change in consumer preference
A change in the price of the good itself
A change in the price of a substitute
The law of demand states that, ceteris paribus:
Demand increases when price increases
Demand and price are positively related
As price increases, quantity demanded decreases
Quantity demanded is unaffected by price
Which of the following is a determinant of demand?
Technology
Price of inputs
Consumer income
Number of sellers
If two goods are complements, a decrease in the price of one will:
Decrease demand for the other
Not affect the other
Increase demand for the other
Cause supply to shift
A shift to the right in the demand curve indicates:
Decrease in demand
Increase in demand
Lower price
Decrease in supply
Which scenario would cause a leftward shift in the demand curve for coffee?
Decrease in tea prices
Increase in income (coffee is a normal good)
Increase in population
Coffee becomes more fashionable
If income increases and the demand for instant noodles decreases, instant noodles are considered a:
Normal good
Inferior good
Complementary good
Luxury good
Which of the following pairs are likely substitutes?
Tea and sugar
Bread and butter
Coffee and tea
Cars and gasoline
The demand curve typically slopes downward due to:
Law of supply
Diminishing marginal utility
Law of diminishing returns
Technology changes
An increase in the number of buyers in a market will:
Shift the supply curve left
Shift the demand curve right
Shift the supply curve right
Cause no change
When price increases and total revenue decreases, demand is likely:
Elastic
Inelastic
Unit elastic
Perfectly elastic
Which of the following does NOT affect demand?
Consumer expectations
Cost of production
Population size
Income level
Which term refers to the responsiveness of quantity demanded to a change in price?
Price flexibility
Income effect
Price elasticity of demand
Law of demand
The demand for a good is likely to be more elastic if:
It is a necessity
It has few substitutes
It is a luxury good
The time period is short
A demand curve that is vertical indicates:
Perfectly elastic demand
Inelastic supply
Perfectly inelastic demand
Unit elasticity
An increase in demand with no change in supply will:
Increase equilibrium price and quantity
Decrease price and increase quantity
Increase price and decrease quantity
Leave equilibrium unchanged
Ceteris paribus, a decrease in income will lead to a decrease in demand for:
Inferior goods
Normal goods
Giffen goods
Public goods
The law of supply states that:
As price increases, quantity supplied decreases
As price increases, quantity supplied increases
Supply is constant
Quantity supplied is independent of price
Which of the following is a determinant of supply?
Consumer income
Preferences
Input prices
Substitutes in consumption
An improvement in technology will:
Shift the supply curve left
Shift the demand curve right
Shift the supply curve right
Have no effect
An increase in the price of inputs will:
Shift supply curve left
Shift supply curve right
Increase demand
Increase supply
Which of the following would cause a movement along the supply curve?
Price of the good itself
Change in technology
Number of sellers
Price of related goods
If the number of producers in a market increases, the supply curve will:
Shift left
Remain unchanged
Shift right
Become vertical
Which of these would cause a decrease in supply?
Lower input prices
New technology
A tax on production
Entry of new firms
A supply curve that is vertical implies:
Infinite supply
Perfectly inelastic supply
Perfectly elastic supply
Unit elasticity
A supply curve that is vertical implies:
Infinite supply
Perfectly inelastic supply
Perfectly elastic supply
Unit elasticity
If the price of wheat rises, we expect:
A decrease in supply of wheat
No change in wheat quantity supplied
An increase in quantity supplied of wheat
Increase in demand for wheat
Ceteris paribus, a subsidy to producers will:
Increase supply
Decrease supply
Have no effect
Reduce demand
Which of the following will not shift the supply curve?
A change in input prices
A change in the number of sellers
A change in the price of the good itself
A technological innovation
If supply is perfectly elastic, the supply curve is:
Downward sloping
Horizontal
Vertical
Curved
A rightward shift in the supply curve means:
Decrease in supply
Increase in supply
Increase in price
Increase in demand
Which event would shift the supply curve for corn to the right?
Increase in fertilizer prices
Flood damaging crops
Introduction of pest-resistant corn seeds
Higher wages for workers
Which of the following could cause the supply curve to shift left?
Decrease in input prices
An increase in taxes
A subsidy to producers
Technological advancement
Expectations of higher future prices will likely:
Decrease current supply
Increase current supply
Have no effect
Increase current demand
An increase in the cost of machinery used in production will:
Increase supply
Decrease supply
Increase demand
Have no impact
Market equilibrium occurs where:
Quantity demanded > quantity supplied
Demand equals supply
Surplus is maximized
Price is zero
At the equilibrium price:
There is a surplus
There is a shortage
There is no pressure to change the price
Demand is greater than supply
A surplus occurs when:
Demand exceeds supply
Supply equals demand
Price is above equilibrium
Price is below equilibrium
A shortage occurs when:
Price is above equilibrium
Price is below equilibrium
Quantity supplied is greater than quantity demanded
Market is in balance
If supply increases and demand remains constant, equilibrium price will:
Increase
Decrease
Stay the same
Be indeterminate
If both demand and supply increase, equilibrium quantity will:
Increase
Decrease
Stay the same
Be indeterminate
If demand increases and supply decreases, equilibrium price will:
Increase
Decrease
Stay the same
Be unpredictable
What happens if price is set below equilibrium?
There is excess supply
Quantity supplied increases
A shortage arises
There is no effect
Which of the following best describes equilibrium?
Government-set price
Balance of trade
Market-clearing price
Maximum possible price
If a price floor is set above equilibrium price:
Shortages will occur
Surpluses will occur
Market will clear
Price will fall
If a price ceiling is below equilibrium price, then:
The market will clear
There will be a surplus
There will be a shortage
Price will rise
Which of the following could eliminate a shortage?
Raising the price
Lowering the price
Increasing demand
Reducing supply
When demand increases more than supply increases:
Price falls
Price rises
Price remains constant
Surplus occurs
Equilibrium price is also known as the:
Floor price
Ceiling price
Market-clearing price
Retail price
Which of the following would move the market out of equilibrium?
A simultaneous increase in demand and supply
Imposing a price ceiling
Market freedom
Competition
In a free market, prices adjust to eliminate:
Government intervention
Profits
Surpluses and shortages
Marginal utility
