Economic Principles of Supply and Demand Quiz
Test your knowledge with questions on law of demand, supply curve, elasticity, equilibrium, and more.
#1
Which of the following describes the law of demand?
As price increases, quantity demanded increases.
As price increases, quantity demanded decreases.
As price decreases, quantity demanded increases.
As price decreases, quantity demanded decreases.
#2
What happens to the demand curve when there is an increase in consumer income?
The demand curve shifts to the left.
The demand curve shifts to the right.
There is no effect on the demand curve.
The demand curve becomes steeper.
#3
What is the law of supply?
As price increases, quantity supplied decreases.
As price decreases, quantity supplied increases.
As price increases, quantity supplied increases.
As price decreases, quantity supplied decreases.
#4
Which of the following is a determinant of supply?
Income
Consumer tastes
Price of related goods
Technology
#5
If the price of a substitute good increases, what happens to the demand for the original good?
The demand for the original good increases.
The demand for the original good decreases.
There is no effect on the demand for the original good.
The demand for the original good becomes elastic.
#6
What is price elasticity of demand?
A measure of how much quantity demanded changes in response to a change in price.
A measure of how much quantity supplied changes in response to a change in price.
A measure of how much consumer income changes in response to a change in price.
A measure of how much production costs change in response to a change in price.
#7
What does a perfectly elastic supply curve look like?
Horizontal line
Vertical line
Downward sloping line
Upward sloping line
#8
What happens to equilibrium price and quantity when demand decreases and supply increases?
Price decreases, quantity decreases
Price increases, quantity decreases
Price decreases, quantity increases
Price increases, quantity increases
#9
Which factor does NOT affect the supply curve?
Technology
Price of inputs
Government regulations
Consumer preferences
#10
What is the concept of consumer surplus?
The difference between the maximum price a consumer is willing to pay and the price they actually pay.
The difference between the price a producer receives and the minimum price they are willing to accept.
The difference between the quantity demanded and the quantity supplied at the equilibrium price.
The difference between total revenue and total cost for a firm.
#11
What is the difference between a change in quantity supplied and a change in supply?
A change in quantity supplied is caused by a change in price, while a change in supply is caused by non-price factors.
A change in quantity supplied is caused by non-price factors, while a change in supply is caused by a change in price.
There is no difference between a change in quantity supplied and a change in supply.
A change in quantity supplied and a change in supply both refer to the same concept.
#12
What is the concept of price ceiling in economics?
A maximum price set by the government above which the good cannot be sold.
A minimum price set by the government below which the good cannot be sold.
A minimum price set by the government above which the good cannot be sold.
A maximum price set by the government below which the good cannot be sold.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Microeconomics
Popular Quizzes in Economics
Report