Demand and Supply revision quiz

Question 1

What is a factor market?

Accepted Answer

A market for production factors like labour and capital

Question 2

Which of the following statements about inferior goods is true?

Accepted Answer

An increase in demand as income decreases

Question 3

What happens to the market equilibrium when the supply of a good increases?

Accepted Answer

The equilibrium price decreases, and the equilibrium quantity increases

Question 4

Market equilibrium is reached when supply equals demand

Accepted Answer

False

Question 5

A shift to the right in a supply curve indicates:

Accepted Answer

An increase in supply

Question 6

Which of the following can shift the demand curve to the left?

Accepted Answer

Decrease in consumer income

Question 7

If the cost of producing a new type of energy drink increases, what is likely to happen to the supply of it?

Accepted Answer

The supply of the energy drink will decrease

Question 8

If a technological improvement occurs in the production of a good, the supply curve:

Accepted Answer

Shifts to the right

Question 9

Consumer tastes and preferences do not affect the demand for a good

Accepted Answer

False

Question 10

A shift to the left in a supply curve can be caused by:

Accepted Answer

An increase in production costs

Question 11

Commodities markets deal with final products like cars and electronics

Accepted Answer

False

Question 12

Which of the following is an example of a commodity?

Accepted Answer

Wheat

Question 13

If a popular game console becomes cheaper, how would this affect the demand for a similar, but less popular console?

Accepted Answer

The demand for the less popular console would likely decrease

Question 14

Inferior goods are:

Accepted Answer

Goods for which demand increases as income decreases

Question 15

If the price of a Nike sneakers decreases, what is likely to happen to the demand for a similar, but less popular brand?

Accepted Answer

The demand for the less popular brand will decrease

Question 16

An increase in the number of sellers typically decreases the supply in the market

Accepted Answer

False

Question 17

An increase in the price of a substitute good can increase the demand for a related good

Accepted Answer

True

Question 18

A market is a place where buys and sellers must connect with each other face to face

Accepted Answer

False

Question 19

When supply decreases and demand remains unchanged, the equilibrium price:

Accepted Answer

Rises

Question 20

A decrease in demand while supply remains constant will lead to a higher equilibrium price

Accepted Answer

False

Question 21

The law of demand states that:

Accepted Answer

As price decreases, demand decreases, As price increases, demand decreases

Question 22

An increase in consumer income will always increase the demand for all goods

Accepted Answer

False

Question 23

A market is a place where buys and sellers connect with each other to trade or exchange goods and services

Accepted Answer

True

Question 24

The labour market is a type of factor market

Accepted Answer

True

Question 25

What does it mean when a market is in equilibrium?

Accepted Answer

The quantity demanded is equal to the quantity supplied

Question 26

If producers expect future prices to rise, they might decrease current supply

Accepted Answer

True

Question 27

If there is an increase in consumer preferences for a good, the demand curve will:

Accepted Answer

Shift to the right

Question 28

For normal goods, which of the following statements is true?

Accepted Answer

An increase in demand as income increases

Question 29

Inferior goods are of lower quality than normal goods

Accepted Answer

False

Question 30

When the price of a good rises, the quantity supplied usually:

Accepted Answer

Increases

Question 31

Technological advancements can increase the supply of a good

Accepted Answer

True

Question 32

The supply curve usually slopes downward from left to right

Accepted Answer

False

Question 33

If a new, more efficient way to produce a good is discovered, what is likely to happen to the supply of that good?

Accepted Answer

The supply will increase

Question 34

Which of the following statements about normal goods is true?

Accepted Answer

Demand increases as income increases

Question 35

Which of the following is NOT a factor that affects supply?

Accepted Answer

Technological advances

Question 36

What happens to the demand for a good when the price of a substitute good decreases?

Accepted Answer

The demand for the original good decreases

Question 37

A rightward shift in the supply curve indicates an increase in supply

Accepted Answer

True

Question 38

Inferior goods are goods for which demand increases as income increases

Accepted Answer

False

Question 39

Which of the following factors does NOT a determine demand?

Accepted Answer

Production costs

Question 40

Which of the following factors would cause a shift to the right in the demand curve?

Accepted Answer

An increase in the price of a substitute good

Question 41

The law of demand states that as price decreases, demand increases

Accepted Answer

True

Question 42

When supply decreases and demand remains unchanged, the equilibrium price falls

Accepted Answer

False

Question 43

The introduction of a new technology that reduces production costs will shift the supply curve to the left

Accepted Answer

False

Question 44

A market with a downward-sloping demand curve and an upward-sloping supply curve will reach equilibrium where:

Accepted Answer

Demand equals supply

Question 45

Which of the following will NOT cause a shift in the demand curve?

Accepted Answer

Change in production technology

Question 46

Normal goods see an increase in demand as consumer income rises

Accepted Answer

True

Demand and Supply revision quiz

Questions 46

Demand and Supply revision quiz

Questions 46