According to the law of demand

as the price of a good falls, quantity demanded will rise

Which of the following will cause a decrease in supply?

an increase in the costs of production

In the law of supply there is

a positive relationship between price and quantity supplied

the sum of all individual demand curves

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Markets - demand and supply

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A quick quiz to see how well you know your stuff with regards to markets

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Questions 14

Answers

1
According to the law of demand
there is no relationship between price and quantity
as the price of a good falls, quantity demanded will fall
as the price of a good falls, quantity demanded will rise
there is a positive relationship between price and quantity
2
If the price of apples increases, then the demand for apples will:
expand
increase
decrease
contract
3
At a price of P1 on the image here, there will be
a surplus
a decrease in demand
a shortage
equilibrium
4
Which of the following will cause a decrease in supply?
a decrease in the taxes involved in production
an increase in the costs of production
an increase in the subsidies available
a rise in producer expectations
5
In the law of supply there is
never a vertical supply curve
no relationship between price and quantity supplied
a positive relationship between price and quantity supplied
a negative relationship between price and quantity supplied
6
A state of balance between different forces, where there is no tendency for change is:
efficiency
equilibrium
expansion
effective demand
7
A movement upwards to the right along an existing supply curve can be explained as an
a contraction in supply
expansion in supply
increase in supply
a decrease in supply
8
The image here indicates a
supply increase
supply decrease
supply contraction
supply expansion
9
The image here shows a
excess demand
surplus
shortage
equilibrium
10
Market demand is
more important than individual demand
not based on individual demand
irrelevant in markets
the sum of all individual demand curves
11
If a product is a normal good, then demand will
decrease when income increases
contract when income decreases
increase when income increases
expand when income increases
12
The shift of the demand curve shown in the image can be explained as
a surplus
a decrease
a shortage
an increase
13
When the price of coca cola increases, demand for pepsi will
increase
expand
contract
decrease
14
A leftward shift of the demand curve is described as
an expansion
a contraction
an increase
a decrease

Markets - demand and supply Flashcards | StudBud