#1
In the context of supply and demand, what does the law of demand state?
As price increases, quantity demanded decreases
As price increases, quantity demanded increases
As price decreases, quantity demanded decreases
As price decreases, quantity demanded increases
#2
What is the law of supply in market dynamics?
As price increases, quantity supplied decreases
As price increases, quantity supplied increases
As price decreases, quantity supplied decreases
As price decreases, quantity supplied increases
#3
How does technological advancement typically impact the supply curve?
Shifts the supply curve to the left
Shifts the supply curve to the right
Causes a movement along the supply curve
Does not affect the supply curve
#4
What is the impact of a subsidy on the supply curve?
Shifts the supply curve to the left
Shifts the supply curve to the right
Causes a movement along the supply curve
Does not affect the supply curve
#5
Which factor does NOT typically influence demand in the market?
Consumer preferences
Income levels
Cost of production
Price of related goods
#6
What is the elasticity of demand?
A measure of how much quantity demanded responds to a change in price
The total quantity demanded in the market
The demand curve on a graph
The percentage change in quantity demanded
#7
What is the difference between a movement along the demand curve and a shift of the demand curve?
A movement is caused by a change in price, while a shift is caused by a change in non-price factors
A shift is caused by a change in price, while a movement is caused by a change in non-price factors
Both refer to changes in price
Both refer to changes in non-price factors
#8
If the government imposes a price floor above the equilibrium price, what is likely to happen?
A surplus will occur
A shortage will occur
There will be no impact on the market
The market will reach a new equilibrium
#9
What is the difference between a normal good and an inferior good?
Normal goods have an elastic demand, while inferior goods have an inelastic demand
Normal goods have an inelastic demand, while inferior goods have an elastic demand
Normal goods are luxury items, while inferior goods are basic necessities
Normal goods experience an increase in demand with rising incomes, while inferior goods experience a decrease in demand
#10
If the price of a complementary good increases, what is likely to happen to the demand for the main product?
The demand will increase
The demand will decrease
There will be no impact on the demand
The demand will become perfectly elastic
#11
If the demand for a product is inelastic, how will a change in price affect total revenue?
Total revenue will increase
Total revenue will decrease
Total revenue will remain unchanged
Cannot be determined
#12
What is the concept of equilibrium price in supply and demand analysis?
The price at which quantity demanded equals quantity supplied
The highest price a consumer is willing to pay
The lowest price a producer is willing to accept
The price determined solely by government regulations
#13
What is the cross elasticity of demand?
A measure of how quantity demanded of one good responds to a change in price of another good
The responsiveness of quantity demanded to a change in income
The percentage change in quantity demanded
The total quantity demanded in the market
#14
If the demand curve is perfectly elastic, how does a change in price affect quantity demanded?
Any increase in price results in zero quantity demanded
Quantity demanded remains constant regardless of price changes
Quantity demanded decreases as price increases
Quantity demanded increases as price increases
#15
What is the concept of elasticity of supply?
A measure of how much quantity supplied responds to a change in price
The total quantity supplied in the market
The supply curve on a graph
The percentage change in quantity supplied
#16
What is the concept of deadweight loss in the context of market dynamics?
The loss in consumer surplus due to a price ceiling
The loss in producer surplus due to a price floor
The total loss in economic efficiency due to a market intervention
The loss in tax revenue collected by the government