Supply and Demand Quiz

Question 1

What happened to the equilibrium price on the graph below?

Accepted Answer

Decreased

Question 2

The Law of Supply states that there is a __ relationship between price and quantity supplied.

Accepted Answer

direct

Question 3

At the equilibrium price, what is the QUANTITY of widgets supplied and demanded?

Accepted Answer

4 million

Question 4

To show a DECREASE in demand, you would shift the entire demand curve to the ___.

Accepted Answer

left

Question 5

What is being demonstrated by the graph below?

Accepted Answer

Increase in Supply

Question 6

The Law of __ states that there is an inverse relationship between price and quantity demanded.

Accepted Answer

Demand

Question 7

Which of the following COULD have caused the change to the graph below?

Accepted Answer

A Decrease in Consumer Income

Question 8

A low price signals producers to supply _____ and consumers to demand _____.

Accepted Answer

less, more

Question 9

What is the ONLY factor that changes QUANTITY?

Accepted Answer

Price

Question 10

If the price increased to $5, what would be created?

Accepted Answer

Surplus

Question 11

How does the market correct a shortage?

Accepted Answer

Price increases

Question 12

Which of the following is NOT a factor that changes DEMAND?

Accepted Answer

Costs and Availability of Inputs

Question 13

Which of the following is NOT a factor that changes SUPPLY?

Accepted Answer

Price of a Substitute

Question 14

If the price decreased to $2, what would be created?

Accepted Answer

Shortage

Question 15

How does the market correct a surplus?

Accepted Answer

Price decreases

Questions 15