Principles of Microeconomics - Supply, Demand, and Market Equilibrium Quiz

Test your understanding of microeconomic principles with questions on demand, supply, market structures, elasticity, and more.

Practice Learn Test

What is the law of demand in economics?

As price increases, quantity demanded increases

As price decreases, quantity demanded decreases

As price increases, quantity demanded decreases

As price decreases, quantity demanded increases

What is the law of supply in economics?

As price increases, quantity supplied decreases

As price decreases, quantity supplied decreases

As price increases, quantity supplied increases

As price decreases, quantity supplied increases

In economics, what is consumer surplus?

The difference between the highest price a consumer is willing to pay and the price they actually pay

The total value of all goods and services consumed by a consumer

The additional satisfaction gained from consuming one more unit of a good or service

The total amount of money a consumer is willing to spend on goods and services

What is the law of diminishing marginal utility?

As the price of a good increases, the quantity demanded increases

As the quantity of a good consumed increases, the total utility also increases

As more of a good is consumed, the additional satisfaction from consuming one more unit decreases

As the quantity of a good consumed decreases, the marginal utility also decreases

What is producer surplus in economics?

The difference between the lowest price a producer is willing to accept and the price they actually receive

The total value of all goods and services produced by a producer

The additional satisfaction gained from producing one more unit of a good or service

The total amount of money a producer receives from selling goods and services

What is the formula for calculating total revenue?

Price x Quantity

Price / Quantity

Quantity / Price

Price + Quantity

What causes a shift in the demand curve?

Change in price

Change in quantity supplied

Change in consumer preferences

Change in technology

Which of the following is NOT a determinant of supply?

Technology

Taxes and subsidies

Consumer preferences

Resource prices

What is a price ceiling in economics?

A legally established maximum price for a good or service

A legally established minimum price for a good or service

The price at which quantity demanded equals quantity supplied

The price at which consumers are willing to buy a good or service

#10

Which of the following is a characteristic of a perfectly competitive market?

Many buyers and sellers with differentiated products

Few buyers and sellers with similar products

One buyer and many sellers with differentiated products

Many buyers and sellers with identical products

#11

What is the price elasticity of demand formula?

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

#12

What is a price floor in economics?

A legally established maximum price for a good or service

A legally established minimum price for a good or service

The price at which quantity demanded equals quantity supplied

The price at which producers are willing to sell a good or service

#13

What happens to market equilibrium price and quantity when demand increases and supply decreases?

Price increases, quantity decreases

Price decreases, quantity decreases

Price increases, quantity increases

Price decreases, quantity increases

#14

What is the income elasticity of demand formula?

Percentage change in quantity demanded / Percentage change in income

Percentage change in income / Percentage change in quantity demanded

Change in quantity demanded / Change in income

Change in income / Change in quantity demanded

#15

What is the cross-price elasticity of demand formula?

Percentage change in quantity demanded of one good / Percentage change in price of another good

Percentage change in price of one good / Percentage change in quantity demanded of another good

Change in quantity demanded of one good / Change in price of another good

Change in price of one good / Change in quantity demanded of another good

#16

What is the formula for calculating elasticity of supply?

Percentage change in quantity supplied / Percentage change in price

Percentage change in price / Percentage change in quantity supplied

Change in quantity supplied / Change in price

Change in price / Change in quantity supplied