Supply And Demand Quiz

What is the price elasticity of demand?

A measure of how much the price of a good responds to a change in demand

A measure of how much the quantity demanded of a good responds to a change in supply

A measure of how much the quantity demanded of a good responds to a change in price

A measure of how much the quantity supplied of a good responds to a change in price

None

What is an inferior good?

A good for which supply increases as consumer income increases

A good for which demand decreases as consumer income increases

A good for which demand remains constant regardless of income changes

A good for which demand increases as consumer income increases

None

What does it mean if two goods have a negative cross-price elasticity of demand?

They are inferior goods

They are normal goods

They are substitute goods

They are complementary goods

None

What is a demand schedule?

A table that shows the quantity supplied at different prices

A graph that shows the quantity demanded at different prices

A table that shows the quantity demanded at different prices

A graph that shows the quantity supplied at different prices

None

What is the law of supply?

When the price of a good remains constant, the quantity supplied decreases

When the price of a good increases, the quantity supplied increases

When the price of a good increases, the quantity supplied decreases

When the price of a good decreases, the quantity supplied increases

None

What is the cross-price elasticity of demand?

A measure of how much the price of a good responds to a change in supply

A measure of how much the quantity supplied of one good responds to a change in the price of another good

A measure of how much the quantity demanded of a good responds to a change in consumer income

A measure of how much the quantity demanded of one good responds to a change in the price of another good

None

What happens to the equilibrium price if there is an increase in supply?

It increases

It remains the same

It decreases

It fluctuates

None

Which of the following is an example of a complementary good?

Cars and bicycles

Peanut butter and jelly

Laptops and smartphones

Tea and coffee

None

Which of the following is an example of a substitute good?

Laptops and software

Peanut butter and jelly

Tea and coffee

Cars and gasoline

None

10.

What happens to the equilibrium quantity if there is an increase in demand?

It increases

It remains the same

It fluctuates

It decreases

None

11.

What happens to the supply curve when there is a technological advancement?

It shifts to the left

It becomes flatter

It shifts to the right

It becomes steeper

None

12.

What is market equilibrium?

The point where supply exceeds demand

The point where supply equals demand

The point where demand exceeds supply

The point where price equals quantity

None

13.

What is a normal good?

A good for which supply increases as consumer income increases

A good for which demand decreases as consumer income increases

A good for which demand remains constant regardless of income changes

A good for which demand increases as consumer income increases

None

14.

What is the law of demand?

When the price of a good decreases, the quantity demanded decreases

When the price of a good remains constant, the quantity demanded decreases

When the price of a good increases, the quantity demanded decreases

When the price of a good increases, the quantity demanded increases

None

15.

Which of the following would likely have inelastic demand?

Insulin for diabetics

Vacation packages

Designer clothing

Luxury cars

None

16.

What is a shortage in the context of supply and demand?

When quantity equals price

When quantity supplied exceeds quantity demanded

When quantity demanded exceeds quantity supplied

When price exceeds quantity

None

17.

What is the law of diminishing marginal utility?

As more of a good is consumed, the total satisfaction gained from consuming the good increases

As more of a good is consumed, the additional satisfaction gained from consuming each additional unit increases

As more of a good is consumed, the total satisfaction gained from consuming the good decreases

As more of a good is consumed, the additional satisfaction gained from consuming each additional unit decreases

None

18.

What is a surplus in the context of supply and demand?

When quantity supplied exceeds quantity demanded

When quantity equals price

When price exceeds quantity

When quantity demanded exceeds quantity supplied

None

19.

What is the effect of a price ceiling set below the equilibrium price?

It creates a shortage

It creates a surplus

It decreases demand

It has no effect

None

20.

What is the marginal utility?

The total satisfaction gained from consuming a good

The total cost of producing a good

The additional satisfaction gained from consuming one more unit of a good

The additional cost of producing one more unit of a good

None

21.

What is the substitution effect?

When the quantity demanded of a good increases due to a decrease in price

When the quantity demanded of a good decreases due to an increase in price

When consumers replace a more expensive good with a less expensive one

When consumers replace a less expensive good with a more expensive one

None

22.

What is the income elasticity of demand?

A measure of how much the price of a good responds to a change in consumer income

A measure of how much the quantity demanded of a good responds to a change in supply

A measure of how much the quantity demanded of a good responds to a change in consumer income

A measure of how much the quantity supplied of a good responds to a change in consumer income

None

23.

What is the income effect?

The change in supply resulting from a change in real income

The change in demand resulting from a change in the supply of a good

The change in consumption resulting from a change in the price of a good

The change in consumption resulting from a change in real income

None

24.

What happens to the demand curve when there is an increase in consumer income?

It shifts to the left

It shifts to the right

It becomes steeper

It becomes flatter

None

25.

What does it mean if a good has elastic demand?

The quantity supplied changes significantly with a change in price

The quantity demanded changes significantly with a change in price

The quantity demanded does not change significantly with a change in price

The quantity supplied does not change significantly with a change in price

None

26.

What is a supply schedule?

A graph that shows the quantity supplied at different prices

A graph that shows the quantity demanded at different prices

A table that shows the quantity demanded at different prices

A table that shows the quantity supplied at different prices

None

27.

What does it mean if two goods have a positive cross-price elasticity of demand?

They are inferior goods

They are complementary goods

They are normal goods

They are substitute goods

None

28.

What is the effect of a price floor set above the equilibrium price?

It decreases supply

It has no effect

It creates a shortage

It creates a surplus

None

29.

Which of the following would likely have elastic demand?

Luxury cars

Basic food items

Electricity

Insulin for diabetics

None

30.

What does it mean if a good has inelastic demand?

The quantity supplied changes significantly with a change in price

The quantity supplied does not change significantly with a change in price

The quantity demanded does not change significantly with a change in price

The quantity demanded changes significantly with a change in price

None

Time’s up

Are you ready to deepen your understanding of economics? Take our Supply and Demand Quiz to test your knowledge and learn valuable insights. This interactive quiz will challenge your grasp on fundamental concepts, helping you see how supply and demand shape markets. Whether you’re a beginner or a seasoned economist, you’ll find this quiz both educational and engaging.

Expect questions that cover real-world scenarios and theoretical principles. You’ll explore how prices fluctuate, what drives consumer behavior, and how businesses respond to market changes. By the end, you’ll have a clearer picture of how supply meets demand in everyday transactions. Dive in now to enhance your economic literacy. Get ready to think critically, improve your skills, and gain a deeper appreciation of the forces that drive our economy. Start the quiz and see how much you know!

Supply And Demand – FAQ

What is the basic principle of supply and demand?

The principle of supply and demand is a fundamental economic concept. It states that the price of a good or service is determined by the relationship between its availability (supply) and the desire of buyers (demand). When demand exceeds supply, prices tend to rise. Conversely, when supply exceeds demand, prices tend to fall.

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