#1
Which of the following factors does NOT affect demand?
Income of consumers
Price of substitutes
Price of the product
Government regulations
#2
What does the law of demand state?
As price increases, quantity demanded decreases
As price decreases, quantity demanded decreases
As price increases, quantity demanded increases
As price decreases, quantity demanded increases
#3
What is the formula for price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Change in quantity demanded / Change in price
Change in price / Change in quantity demanded
#4
What is the law of supply?
As price increases, quantity supplied decreases.
As price decreases, quantity supplied decreases.
As price increases, quantity supplied increases.
As price decreases, quantity supplied increases.
#5
What is the market equilibrium?
When demand equals supply.
When demand exceeds supply.
When supply exceeds demand.
When quantity demanded exceeds quantity supplied.
#6
What is a substitute good?
A good that is consumed in addition to another good.
A good that is produced in addition to another good.
A good that can be used in place of another good.
A good that cannot be used in place of another good.
#7
Which of the following factors could lead to a rightward shift of the supply curve?
An increase in production costs
A decrease in the number of suppliers
A decrease in taxes on production
A decrease in demand
#8
When does market equilibrium occur?
When quantity demanded exceeds quantity supplied
When quantity supplied exceeds quantity demanded
When quantity demanded equals quantity supplied
When quantity demanded is zero
#9
What is a price ceiling?
A government-imposed maximum price that can be charged for a good or service
A government-imposed minimum price that can be charged for a good or service
A price set by producers to maximize profits
A price set by consumers to maximize utility
#10
What does a shift to the right in the demand curve indicate?
An increase in demand
A decrease in demand
An increase in supply
A decrease in supply
#11
What does a price floor create?
A surplus of goods
A shortage of goods
An equilibrium in the market
A price increase
#12
What is a normal good?
A good for which demand decreases as income increases
A good for which demand increases as income increases
A good with inelastic demand
A good with elastic demand
#13
Which of the following is NOT a determinant of supply?
Input prices
Technology
Number of buyers
Expectations of future prices
#14
What is the price elasticity of demand?
A measure of the responsiveness of quantity demanded to a change in price
A measure of the responsiveness of price to a change in quantity demanded
A measure of the total demand in the market
A measure of the price level in the market
#15
What does a perfectly elastic demand curve look like?
A horizontal line
A vertical line
A downward-sloping line
An upward-sloping line
#16
What is the cross-price elasticity of demand?
A measure of the responsiveness of quantity demanded of one good to a change in the price of another good
A measure of the responsiveness of quantity demanded to a change in income
A measure of the responsiveness of quantity supplied to a change in price
A measure of the responsiveness of price to a change in quantity demanded
#17
What is the income elasticity of demand?
A measure of the responsiveness of quantity demanded to a change in price
A measure of the responsiveness of quantity demanded to a change in income
A measure of the responsiveness of price to a change in quantity demanded
A measure of the responsiveness of quantity supplied to a change in price
#18
What is a Giffen good?
A good for which demand increases as price increases
A good for which demand decreases as income increases
A good with elastic demand
A good for which demand increases as price decreases