Economics Quiz

What happens to the quantity demanded when prices go down, according to the law of demand?

• Quantity demanded decreases

• Quantity demanded stays the same

• Quantity demanded increases

• The law of demand does not relate to price changes

Which of the following is NOT a demand shifter?

• Consumer taste

• Consumer expectations

• Substitute good

• Number of producers

According to the law of supply, what happens to quantity supplied when prices increase?

• Quantity supplied decreases

• Quantity supplied stays the same

• Quantity supplied increases

• Quantity supplied is unrelated to price changes

Which of the following is a supply shifter?

• Income market size

• Technology

• Consumer taste

• Substitute good

What is the term used when the supply and demand curves cross each other?

• Surplus

• Shortage

• Equilibrium

• Disequilibrium

What occurs when there is more supply of a product than what is demanded?

• Equilibrium

• Shortage

• Surplus

• Demand increase

What is the situation called when the demand of a product is greater than the supply?

• Equilibrium

• Surplus

• Shortage

• Demand decrease

Identify the point labeled "Equilibrium" on the supply and demand graph.

• The point where the supply curve starts

• The point where the demand curve ends

• The point where the supply and demand curves intersect

• The highest point on the price axis

What will happen to the price of the product if demand increases beyond the ability of producers to supply it?

• The price will decrease

• The price will remain the same

• The price will increase

• The price will fluctuate unpredictably

If the government wants to ensure a company doesn't price gouge during a natural disaster, which policy can they implement?

• Price sealing

• Price fixing

• Price ceiling

• Price flooring