Supply and Demand in Economics Quiz
Test your knowledge on law of demand, supply shifts, elasticity, equilibrium, and more. Explore economic principles in this microeconomics quiz.
#1
Which of the following best defines the law of demand?
As prices rise, quantity demanded rises.
As prices rise, quantity demanded falls.
As prices fall, quantity supplied falls.
As prices fall, quantity demanded rises.
#2
What is the law of supply?
As prices rise, quantity supplied rises.
As prices rise, quantity supplied falls.
As prices fall, quantity supplied falls.
As prices fall, quantity supplied rises.
#3
What is price elasticity of demand?
The percentage change in quantity demanded relative to a percentage change in price.
The responsiveness of quantity demanded to changes in income.
The responsiveness of quantity demanded to changes in price.
The responsiveness of quantity demanded to changes in quantity supplied.
#4
What is income elasticity of demand?
The percentage change in quantity demanded relative to a percentage change in price.
The responsiveness of quantity demanded to changes in income.
The responsiveness of quantity demanded to changes in price.
The responsiveness of quantity demanded to changes in quantity supplied.
#5
What causes a shift in the demand curve?
Change in price of the product itself.
Change in income.
Change in the price of a complementary good.
Change in the price of a substitute good.
#6
Which factor does NOT typically affect supply?
Technology
Government regulations
Consumer preferences
Resource costs
#7
What is the equilibrium price?
The price at which quantity demanded equals quantity supplied.
The price determined solely by demand.
The price determined solely by supply.
The price at which demand exceeds supply.
#8
What does a surplus indicate in the market?
Quantity demanded exceeds quantity supplied.
Quantity supplied exceeds quantity demanded.
The market is in equilibrium.
The demand curve has shifted to the right.
#9
Which factor is most likely to cause a decrease in demand for a product?
An increase in consumer income.
An increase in the price of a complementary good.
Positive advertising of the product.
A decrease in the price of a substitute good.
#10
What does it mean when demand is said to be elastic?
A small change in price leads to a large change in quantity demanded.
A large change in price leads to a small change in quantity demanded.
There is no change in quantity demanded with a change in price.
Quantity demanded is always the same regardless of price changes.
#11
In the long run, how does an increase in demand affect equilibrium price and quantity?
Price increases, quantity increases.
Price decreases, quantity increases.
Price decreases, quantity decreases.
Price increases, quantity decreases.
#12
What is the income elasticity of demand?
The responsiveness of quantity demanded to changes in price.
The responsiveness of quantity demanded to changes in income.
The percentage change in quantity demanded relative to a percentage change in price.
The percentage change in quantity demanded relative to a percentage change in income.
#13
What does it mean when supply is perfectly elastic?
Quantity supplied is infinitely responsive to price changes.
Quantity supplied is unresponsive to price changes.
Supply curve is vertical.
Supply curve is horizontal.
#14
What is the cross-price elasticity of demand between substitutes?
Positive
Negative
Zero
Indeterminate
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