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.

#1

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
37 answered
#2

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
36 answered
#3

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
37 answered
#4

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
30 answered
#5

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
25 answered
#6

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
21 answered
#7

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
21 answered
#8

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
23 answered
#9

Which of the following is a determinant of supply?

Consumer preferences
Technology
Taxes
Consumer income
18 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
16 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
16 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
19 answered

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