Principles of Demand and Supply Quiz

Test your knowledge with these questions on determinants, equilibrium, elasticity, subsidies, and more in microeconomics.

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Which of the following is a determinant of demand?

Price of the product

Cost of production

Number of competitors

Government regulations

What does the law of supply state?

As price increases, quantity supplied decreases

As price increases, quantity supplied increases

As price decreases, quantity supplied decreases

As price decreases, quantity supplied increases

In the demand and supply model, what happens when there is a shortage of a good?

Prices rise

Prices fall

No impact on prices

Government intervention occurs

What is elasticity of demand?

The percentage change in quantity demanded divided by the percentage change in price

The total revenue divided by quantity demanded

The percentage change in price divided by the percentage change in quantity demanded

The ratio of quantity demanded to quantity supplied

What is the difference between a movement along the demand curve and a shift in the demand curve?

A movement is caused by changes in price, while a shift is caused by non-price factors

A shift is caused by changes in price, while a movement is caused by non-price factors

Both are caused by changes in price

Both are caused by non-price factors

Which factor is considered a non-price determinant of supply?

Price of the good

Technology

Number of consumers

Expectations about future prices

How does a subsidy affect the market equilibrium?

Increases equilibrium price and quantity

Decreases equilibrium price and quantity

Increases equilibrium price, decreases equilibrium quantity

Decreases equilibrium price, increases equilibrium quantity

What is the difference between a normal good and an inferior good?

Normal goods have elastic demand, while inferior goods have inelastic demand

Normal goods have inelastic demand, while inferior goods have elastic demand

Normal goods are luxury items, while inferior goods are necessities

Normal goods are necessities, while inferior goods are luxury items

Principles of Demand and Supply Quiz

Which of the following is a determinant of demand?

What does the law of supply state?

In the demand and supply model, what happens when there is a shortage of a good?

What is elasticity of demand?

What is the difference between a movement along the demand curve and a shift in the demand curve?

Which factor is considered a non-price determinant of supply?

How does a subsidy affect the market equilibrium?

What is the difference between a normal good and an inferior good?

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