Supply and Demand Quiz

What is the combination of desire, ability, and willingness to buy a product?

• Supply

• Demand

• Incentive

• Price

The supply curve is a graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time.

• True

• False

The Law of Demand states that more will be demanded at ___________ prices and less will be demanded at ____________ prices.

• higher; lower

• lower; higher

• higher; higher

• lower; lower

What is the satisfaction or usefulness obtained from acquiring one more unit of a product?

• Incentive

• Supply

• Marginal Utilility

• Marginal Product

Movement along the demand curve showing that a different quantity is purchased in response to a change in price represents ___________________.

• Change in demand

• Change in quantity demanded

• Change in supply

• Change in quantity supplied

Consumer demand for different amounts at every price, causing the demand curve to shift to the left or the right represents ___________________.

• Change in demand

• Change in quantity demanded

• Change in supply

• Change in quantity supplied

What are products related in such a way that an increase in the price of one reduces the demand for the other?

• complements

• subsitutions

• capital

• services

__________ is the extent to which a change in price causes a change in the quantity demanded.

• Demand

• Supply

• Quantity

• Elasticity

In this type of elasticity, the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied).

• Elastic

• Inelastic

• Unit Elastic

• All of the Above

Changes in quantity demanded and changes in price have a(n) _________ relationship.

• Proportional

• Direct

• Inverse

• Neutral