Supply and demand: What happens to the equilibrium price and quantity when there is an increase in demand and a decrease in supply?

IG1 Practice 1

Quiz
•
Other
•
University
•
Medium
tim skyrme
Used 1+ times
FREE Resource
15 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Equilibrium price will decrease, equilibrium quantity will remain the same
Equilibrium price will increase, equilibrium quantity ambiguous
Equilibrium price will decrease, equilibrium quantity will increase
Equilibrium price will remain the same, equilibrium quantity will decrease
Answer explanation
When there is an increase in demand and a decrease in supply, the equilibrium price will increase. However, the effect on equilibrium quantity is ambiguous.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Supply and demand: Explain the concept of price elasticity of demand and its impact on consumer behavior.
Price elasticity of demand measures the quantity supplied of a good in response to a change in price.
Price elasticity of demand measures the quality of a good in response to a change in price.
Price elasticity of demand measures how much the quantity demanded of a good responds to a change in price.
Price elasticity of demand has no impact on consumer behavior.
Answer explanation
Price elasticity of demand measures how much the quantity demanded of a good responds to a change in price. It helps understand consumer behavior.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Supply and demand: How does the concept of market equilibrium help in understanding the interaction between supply and demand?
Market equilibrium helps in understanding the interaction between supply and demand by showing how prices and quantities adjust to bring supply and demand into balance.
Market equilibrium has no impact on supply and demand
Market equilibrium causes prices to remain constant regardless of supply and demand
Market equilibrium only affects demand, not supply
Answer explanation
Market equilibrium shows how prices and quantities adjust to balance supply and demand.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Market equilibrium: What factors can cause a shift in the demand curve and how does it impact the market equilibrium?
Changes in government regulations
Weather conditions
Number of producers in the market
Changes in consumer income, preferences, prices of related goods, and expectations. It impacts the market equilibrium by causing a change in the quantity and price at which the quantity demanded equals the quantity supplied.
Answer explanation
Changes in consumer income, preferences, prices of related goods, and expectations can shift the demand curve and impact market equilibrium by changing the quantity and price at which quantity demanded equals quantity supplied.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Market equilibrium: Discuss the concept of surplus and shortage in the context of market equilibrium.
Surplus and shortage occur when the market price is too low
Surplus and shortage occur when the market price is not at equilibrium.
Surplus and shortage occur when the market price is exactly at equilibrium
Surplus and shortage occur when the market price is too high
Answer explanation
Surplus and shortage occur when the market price is not at equilibrium.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Market equilibrium: How does the government intervention through price controls affect the market equilibrium?
It has no impact on the market equilibrium
It results in higher consumer satisfaction
It can create either a surplus or a shortage of goods and services.
It leads to increased competition in the market
Answer explanation
Government intervention through price controls can create either a surplus or a shortage of goods and services, affecting the market equilibrium.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Utility maximization: Explain the concept of marginal utility and its role in consumer decision making.
Marginal utility is the price of a good or service, and it does not play a role in consumer decision making.
Marginal utility is the total satisfaction or benefit from consuming all units of a good or service, and it is not relevant to consumer decision making.
Marginal utility is the cost of producing an additional unit of a good or service, and it has no impact on consumer decision making.
Marginal utility is the additional satisfaction or benefit from consuming an additional unit of a good or service, and it helps consumers make optimal allocation decisions.
Answer explanation
Marginal utility is the additional satisfaction or benefit from consuming an additional unit of a good or service, and it helps consumers make optimal allocation decisions.
Create a free account and access millions of resources
Similar Resources on Wayground
20 questions
Economy-Ch 4 (Market Equilibrium)

Quiz
•
University
11 questions
Principles of Economics(2)

Quiz
•
University
10 questions
DEC5114 Tutorial 04

Quiz
•
University
20 questions
Economics May/June 2023 (11/10/22)

Quiz
•
University
14 questions
QUIZ REVISION IMU453

Quiz
•
University
10 questions
Pricing Strategies

Quiz
•
University - Professi...
11 questions
Economics Elasticity

Quiz
•
9th Grade - University
15 questions
foreign exchange rate

Quiz
•
1st Grade - University
Popular Resources on Wayground
25 questions
Equations of Circles

Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)

Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System

Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice

Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers

Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons

Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)

Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review

Quiz
•
10th Grade