#1
Which of the following best describes market equilibrium?
When demand exceeds supply
When supply exceeds demand
When supply equals demand
When there is no demand or supply
#2
What will happen in a market if the price is below the equilibrium price?
Excess demand
Excess supply
No effect on demand or supply
Market collapse
#3
Which of the following is a determinant of supply?
Consumer preferences
Prices of related goods
Technology
Income
#4
What happens to the equilibrium price and quantity of pizza if there is a decrease in the price of cheese (a key ingredient)?
Equilibrium price and quantity of pizza increase
Equilibrium price of pizza decreases, quantity increases
Equilibrium price of pizza increases, quantity decreases
Equilibrium price and quantity of pizza decrease
#5
Which of the following is a determinant of demand?
Number of suppliers
Tastes and preferences
Cost of production
Government regulations
#6
What is the effect on the equilibrium price and quantity of coffee if there is a decrease in the price of tea (a substitute)?
Equilibrium price and quantity of coffee decrease
Equilibrium price of coffee decreases, quantity increases
Equilibrium price of coffee increases, quantity decreases
Equilibrium price and quantity of coffee increase
#7
Which of the following factors does not affect the supply of a product?
Technological advancements
Cost of raw materials
Consumer preferences
Government regulations
#8
What is the likely effect on the equilibrium price and quantity of strawberries if there is a significant increase in the price of ice cream (a complement)?
Equilibrium price and quantity of strawberries increase
Equilibrium price of strawberries decreases, quantity increases
Equilibrium price of strawberries increases, quantity decreases
Equilibrium price and quantity of strawberries decrease
#9
Which of the following is NOT a factor affecting the demand for a product?
Price of the product
Consumer income
Price of related goods
Cost of production
#10
If the government imposes a price ceiling below the equilibrium price, what is the likely outcome?
Surplus of goods
Shortage of goods
No effect on the market
Decrease in consumer welfare
#11
If there is an increase in consumer income for normal goods, what happens to the demand curve?
Shifts left
Shifts right
Does not shift
Becomes vertical
#12
What happens to the equilibrium price and quantity of bicycles if there is an increase in the price of gasoline (a complementary good)?
Equilibrium price and quantity of bicycles increase
Equilibrium price of bicycles decreases, quantity increases
Equilibrium price of bicycles increases, quantity decreases
Equilibrium price and quantity of bicycles decrease
#13
If the government imposes a tax on producers, what is likely to happen to the equilibrium price and quantity in the market?
Equilibrium price decreases, quantity decreases
Equilibrium price increases, quantity increases
Equilibrium price decreases, quantity increases
Equilibrium price increases, quantity decreases