Supply and Demand Economics Quiz

Test your knowledge with 12 questions on supply, demand, equilibrium, elasticity, and more in microeconomics. Explore economic concepts and enhance your understanding.

Practice Learn Test

Which of the following will cause an increase in the demand for a product?

A decrease in the price of a complementary good

An increase in the price of the product

A decrease in consumer income

A decrease in the price of the product

41 answered

In a market where supply and demand are in equilibrium, what is true?

Quantity supplied exceeds quantity demanded

Price is higher than equilibrium price

Quantity demanded exceeds quantity supplied

There is no shortage or surplus

40 answered

Which of the following is NOT a factor that can shift the demand curve?

Changes in consumer preferences

Changes in the price of related goods

Changes in technology

Changes in consumer income

41 answered

What is the law of demand?

As price decreases, quantity demanded decreases

As price decreases, quantity demanded increases

As price increases, quantity supplied decreases

As price increases, quantity demanded decreases

34 answered

If the supply of a product decreases while demand remains constant, what will happen to the equilibrium price and quantity?

Price will decrease and quantity will increase

Price will decrease and quantity will decrease

Price will increase and quantity will decrease

Price will increase and quantity will increase

30 answered

What is the likely effect on the market for gasoline if a new technology greatly improves fuel efficiency in cars?

Decrease in demand and increase in supply

Increase in demand and decrease in supply

Decrease in both demand and supply

Increase in both demand and supply

26 answered

What happens to the equilibrium price and quantity if both demand and supply increase?

Price increases, quantity decreases

Price decreases, quantity increases

Price and quantity both increase

Price and quantity both decrease

25 answered

What does a price ceiling set below the equilibrium price cause in a market?

A surplus

A shortage

An increase in supply

A decrease in demand

27 answered

Which of the following is a determinant of supply?

Consumer preferences

Technology

Taxes

Consumer income

21 answered

#10

When does a market reach allocative efficiency?

When demand equals supply

When the marginal benefit equals the marginal cost

When there is no government intervention

When there is a perfectly competitive market

18 answered

#11

If the demand for a good is inelastic and the price increases, what happens to total revenue?

Increases

Decreases

Remains constant

Can't be determined

18 answered

#12

What effect will an increase in the price of a substitute good have on the demand for the original good?

Increase in demand

Decrease in demand

No effect on demand

Increase in supply