#1
Which of the following factors does NOT influence demand?
Price of the product
Income of consumers
Price of substitute goods
Cost of production
Number of consumers in the market
#2
If there is a surplus in the market, what is most likely to happen to prices?
Prices will rise
Prices will fall
Prices will remain unchanged
Prices will fluctuate randomly
#3
What is the law of demand?
As the price of a good increases, the quantity demanded decreases
As the price of a good increases, the quantity demanded increases
As the price of a good decreases, the quantity demanded increases
As the price of a good decreases, the quantity demanded decreases
#4
Which of the following is an example of a substitute good?
Peanut butter and jelly
Peanut butter and bread
Tea and coffee
Butter and margarine
#5
What is the law of supply?
As the price of a good increases, the quantity supplied decreases
As the price of a good increases, the quantity supplied increases
As the price of a good decreases, the quantity supplied increases
As the price of a good decreases, the quantity supplied decreases
#6
Which of the following is NOT a determinant of supply?
Technology
Cost of production
Price of the product
Government regulations
#7
Which of the following is a determinant of supply?
Consumer preferences
Technology
Income of buyers
Price of related goods
#8
What is the price elasticity of demand formula?
Percentage change in quantity demanded divided by percentage change in price
Percentage change in price divided by percentage change in quantity demanded
Total change in quantity demanded divided by total change in price
Total change in price divided by total change in quantity demanded
#9
What does a perfectly elastic demand curve look like?
Vertical line
Horizontal line
Diagonal line
Curved line
#10
What is the main factor affecting the price elasticity of demand?
The number of competitors in the market
The availability of substitutes
The advertising budget of the firm
The income level of consumers
#11
What is the equilibrium price in a market?
The price set by the government
The price at which quantity demanded equals quantity supplied
The highest price consumers are willing to pay
The lowest price producers are willing to accept
#12
Which of the following would likely cause a shift in the supply curve?
Change in consumer income
Change in the price of a complementary good
Change in technology
Change in consumer preferences
#13
What happens to equilibrium price and quantity if both supply and demand increase?
Price increases, quantity decreases
Price decreases, quantity increases
Price and quantity both increase
Price and quantity both decrease
#14
What is the relationship between price elasticity of demand and total revenue?
They move in opposite directions
They move in the same direction
Total revenue is unaffected by elasticity
Total revenue always decreases with elasticity
#15
What is the difference between a movement along the demand curve and a shift in the demand curve?
A movement along the curve represents a change in price, while a shift represents a change in quantity demanded
A movement along the curve represents a change in quantity demanded, while a shift represents a change in price
A movement along the curve represents a change in quantity demanded, while a shift represents a change in income
A movement along the curve represents a change in price, while a shift represents a change in consumer preferences
#16
What happens to equilibrium price and quantity if supply decreases and demand increases?
Price increases, quantity decreases
Price decreases, quantity increases
Price and quantity both increase
Price and quantity both decrease
#17
What is the impact on equilibrium price and quantity if both demand and supply decrease?
Price increases, quantity decreases
Price decreases, quantity increases
Price and quantity both increase
Price and quantity both decrease