Practice Test: Supply and Demand

Supply and demand are __________ related.

• A. Not
• B. Rarely
• C. Inversely
• D. Uniformly

Which of the following describes the amount of a good producers are able and willing to sell at various prices during a certain period?

• A. Price
• B. Cost
• C. Supply
• D. Demand

Which of the following is the amount of a product a consumer is willing an able to purchase at given prices?

• A. Price
• B. Cost
• C. Supply
• D. Demand

Where the supply curve intersects the demand curve is called......

• shortage
• surplus
• equilibrium
• demand

At what price is the equilibrium for the supply and demand graph?

• $10
• 5
• $19
• 10

At what quantity sold is the equilibrium for the supply and demand graph?

• $10
• 5
• $19
• 10

What happens when there is an excess in demand?

• The price tends to rise.
• The price tends to fall.
• The quantity supplied tends to rise.
• The quantity supplied tends to fall.

What happens when there is an excess in supply?

• The price tends to rise.
• The price tends to fall.
• The quantity supplied tends to rise.
• The quantity supplied tends to fall.

Which of the following is true about the demand curve?

• A. As the price rises, the good’s demand increases
• B. As the price rises, the good’s demand decreases
• C. As the cost rises, the good’s demand increases
• D. As the supply quantity rises, the good’s demand decreases

Toothbrushes and toothpaste are examples of which of the following?

• A. Complementary goods
• B. Substitute goods
• C. Shift goods
• D. Raw goods