#1
Which of the following factors does NOT affect demand?
Price of the product
Income of consumers
Price of related goods
Cost of production
#2
Which of the following is a determinant of supply?
Consumer preferences
Technology
Price of substitutes
Income of consumers
#3
Which of the following is NOT a determinant of demand?
Consumer preferences
Price of the product
Number of firms in the market
Income of consumers
#4
What is the law of demand?
As quantity demanded decreases, price decreases
As quantity demanded increases, price decreases
As quantity demanded decreases, price increases
As quantity demanded increases, price increases
#5
What happens to market equilibrium price and quantity when demand increases and supply remains constant?
Price decreases, quantity increases
Price increases, quantity decreases
Price increases, quantity increases
Price decreases, quantity remains constant
#6
If the demand for a good is inelastic, a decrease in price will result in:
A large increase in quantity demanded
A small increase in quantity demanded
A decrease in quantity demanded
No change in quantity demanded
#7
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and many sellers
One seller and many buyers
Few sellers and many buyers
Many sellers and few buyers
#8
What is the primary determinant of price elasticity of demand?
Availability of substitutes
Income level of consumers
Price of the product
Time period considered
#9
Which of the following scenarios would lead to a decrease in demand for pizza?
An increase in the price of cheese (a complement)
A decrease in the price of pizza dough (a substitute)
An increase in consumer income
A decrease in the price of pizza sauce (a complement)
#10
What is the effect on equilibrium price and quantity when both demand and supply increase?
Price increases, quantity decreases
Price decreases, quantity increases
Price increases, quantity increases
Price decreases, quantity remains constant
#11
In the long run, firms in a perfectly competitive market will earn:
Economic profits
Normal profits
Supernormal profits
Losses
#12
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 remains constant, quantity decreases
#13
What happens to equilibrium price and quantity when both demand and supply decrease?
Price increases, quantity decreases
Price decreases, quantity increases
Price decreases, quantity decreases
Price remains constant, quantity decreases
#14
What is the effect on equilibrium price and quantity when demand increases and supply decreases?
Price increases, quantity decreases
Price decreases, quantity increases
Price increases, quantity increases
Price remains constant, quantity decreases