Fundamentals of Supply and Demand in Economics Quiz

Test your knowledge of supply and demand with these 11 questions covering equilibrium, shifts, elasticity, and more in microeconomics.

#1

What is the relationship between price and quantity demanded according to the law of demand?

Positive
Negative
Zero
Indeterminate
#2

Which of the following is an example of a complementary good?

Peanut butter and jelly
Tea and coffee
Pizza and hamburgers
Butter and margarine
#3

What does a shift to the left of the supply curve indicate?

An increase in supply
A decrease in supply
An increase in demand
A decrease in demand
#4

Which of the following is an example of a normal good?

Ramen noodles
Generic brand products
Luxury cars
Public transportation
#5

What happens to the equilibrium price and quantity when there is an increase in demand and no change in supply?

Equilibrium price increases, equilibrium quantity increases
Equilibrium price increases, equilibrium quantity decreases
Equilibrium price decreases, equilibrium quantity increases
Equilibrium price decreases, equilibrium quantity decreases
#6

Which of the following would cause a rightward shift in the supply curve?

Decrease in the price of substitutes
Increase in the cost of production
Improvement in technology
Decrease in taxes on production
#7

Which of the following is likely to cause a shift in the demand curve for smartphones?

A decrease in the price of smartphones
An increase in the price of phone cases
A decrease in consumer income
An increase in the popularity of social media apps
#8

If the price of coffee increases, what happens to the equilibrium price and quantity of tea, a substitute for coffee?

Equilibrium price and quantity of tea both increase
Equilibrium price and quantity of tea both decrease
Equilibrium price of tea increases, equilibrium quantity of tea decreases
Equilibrium price of tea decreases, equilibrium quantity of tea increases
#9

Which of the following factors does not influence the elasticity of demand for a good?

Availability of substitutes
Necessity of the good
Income level of consumers
Time period considered
#10

What happens to the equilibrium price and quantity when both supply and demand decrease?

Equilibrium price increases, equilibrium quantity decreases
Equilibrium price decreases, equilibrium quantity increases
Equilibrium price decreases, equilibrium quantity decreases
Equilibrium price and quantity are indeterminate
#11

What happens to the equilibrium price and quantity when both demand and supply decrease by the same amount?

Equilibrium price increases, equilibrium quantity decreases
Equilibrium price decreases, equilibrium quantity increases
Equilibrium price and quantity both increase
Equilibrium price and quantity both decrease

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