Demand and Supply Quiz

In a local market, the law of demand is observed. As the price of a popular smartphone increases, consumers react in a predictable manner. What happens in accordance with the law of demand?

• decrease in quantity demanded

• increase in quantity demanded

• decreased demand

• increased demand

Which of the following would cause a change in the quantity demanded for a product?

• changing prices of related products

• changing consumer tastes

• increasing consumer income

• decreasing price of product

Refer to the graph shown. The movement from P 1 to P2 on the graph shows a _____.

• a decrease in demand.

• an increase in quantity demanded.

• an increase in demand.

• a decrease in quantity demanded.

In a local community where rice is a staple food, what is likely to occur in the rice market if buyers anticipate higher prices in the near future?

• The demand for rice will increase.

• The demand for rice will decrease.

• The demand for rice will be unaffected.

• The supply of rice will increase.

What will happen to the demand for these goods when households’ income rises?

• Demand contracts

• Demand extends

• Demand shifts leftward

• Demand shifts rightward

Refer to the graph shown. The change of the position of demand curve to D to D1 on the graph shows a/n _____.

• increase in demand

• a decrease in demand.

• an increase in quantity demanded.

• a decrease in quantity demanded.

The diagram below shows the demand for chocolate. What could cause the movement from point X to point Y?

• a change in tastes

• a fall in the price of chocolate

• an increase in income

• a successful advertising campaign for chocolate

A higher price for batteries would tend to ___

• increase the demand for flashlights.

• decrease the demand for electricity.

• increase the demand for electricity.

• increase the demand for batteries.

What is an increase in advertising likely to cause?

• a fall in demand

• the demand curve to shift outward

• the demand curve to shift inward

• the supply curve to shift downwards to the left

Imagine a scenario where the government implements a quota on the production of corn. What impact will this have on the supply curve of corn?

• It will shift to the right.

• It will shift to the left.

• It will become steeper.

• It will become flatter.