Quiz on Demand and Supply

What is the Law of Demand?

• If the price falls, quantity demanded remains the same.

• If the price rises, quantity demanded decreases.

• If the price falls, quantity demanded decreases.

• If the price rises, quantity demanded increases.

What does a demand schedule represent?

• The total demand of all buyers in a market.

• The relationship between quantity supplied and price.

• The quantities demanded at different prices.

• The change in demand over time.

What happens to the demand curve when demand decreases?

• It becomes vertical.

• It remains unchanged.

• It shifts leftward.

• It shifts rightward.

What is a normal good?

• A good that has no substitutes.

• A good that is always in demand.

• A good for which demand increases as income increases.

• A good for which demand decreases as income increases.

What is the definition of quantity supplied?

• The total amount of goods available in the market.

• The amount of a good that sellers are willing to sell at a specific price.

• The amount of goods demanded by consumers.

• The total production capacity of a market.

What does a supply curve illustrate?

• The change in supply over time.

• The relationship between quantity demanded and price.

• The relationship between quantity supplied and price.

• The total supply of all goods in a market.

What occurs at market equilibrium?

• Quantity supplied exceeds quantity demanded.

• Prices are fixed and do not change.

• Quantity demanded exceeds quantity supplied.

• Quantity demanded equals quantity supplied.

What is a surplus?

• When quantity supplied exceeds quantity demanded.

• When prices are stable.

• When demand is perfectly elastic.

• When quantity demanded exceeds quantity supplied.

What happens to equilibrium price when demand increases?

• It fluctuates unpredictably.

• It increases.

• It remains unchanged.

• It decreases.

What is the effect of a decrease in supply?

• Equilibrium price decreases.

• Equilibrium quantity increases.

• Equilibrium price increases.

• Equilibrium quantity remains unchanged.