EconomicsMicroeconomics

Supply and Demand in Microeconomics Quiz

Test your knowledge with 18 questions covering laws, concepts, and factors in microeconomics. Explore topics like demand, supply, elasticity, and market equilibrium.

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#1

What does the law of demand state?

As price increases, quantity demanded increases.
As price increases, quantity demanded decreases.
As price decreases, quantity demanded increases.
As price decreases, quantity demanded decreases.
#2

Which factor does NOT influence demand?

Price of related goods
Consumer income
Number of suppliers
Consumer preferences
#3

What is a substitute good?

A good that is consumed in conjunction with another good.
A good that can be used in place of another good.
A good that is necessary for survival.
A good that is only consumed on rare occasions.
#4

What is a complementary good?

A good that is consumed in conjunction with another good.
A good that can be used in place of another good.
A good that is necessary for survival.
A good that is only consumed on rare occasions.
#5

What is a luxury good?

A good with an income elasticity greater than 1.
A good with an income elasticity less than 1.
A good with a positive income elasticity.
A good with a negative income elasticity.
#6

What is elasticity?

A measure of how much a change in price affects quantity demanded or supplied.
A measure of the absolute change in quantity demanded or supplied.
A measure of the percentage change in price.
A measure of the total revenue earned by producers.
#7

What is a perfectly elastic demand?

Demand that changes proportionally more than price.
Demand that changes proportionally less than price.
Demand that is infinitely responsive to price changes.
Demand that is not affected by price changes.
#8

What does the law of supply indicate?

As price increases, quantity supplied increases.
As price increases, quantity supplied decreases.
As price decreases, quantity supplied increases.
As price decreases, quantity supplied decreases.
#9

What is the price elasticity of demand?

A measure of how much quantity demanded changes in response to a change in price.
A measure of how much quantity demanded changes without any change in price.
A measure of how much price changes in response to a change in quantity demanded.
A measure of how much price changes without any change in quantity demanded.
#10

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

Price increases, quantity decreases
Price decreases, quantity increases
Price increases, quantity increases
Price decreases, quantity decreases
#11

What is the cross-price elasticity of demand?

A measure of how much quantity demanded changes in response to a change in price of another good.
A measure of how much quantity demanded changes without any change in price.
A measure of how much price changes in response to a change in quantity demanded.
A measure of how much price changes without any change in quantity demanded.
#12

What does the income elasticity of demand measure?

A measure of how much quantity demanded changes in response to a change in price.
A measure of how much quantity demanded changes in response to a change in consumer income.
A measure of how much price changes in response to a change in quantity demanded.
A measure of how much price changes without any change in quantity demanded.
#13

What is a market equilibrium?

When demand exceeds supply.
When supply exceeds demand.
When quantity demanded equals quantity supplied.
When quantity demanded is less than quantity supplied.
#14

Which factor does NOT affect the price elasticity of demand?

Availability of substitutes
Necessity of the good
Time horizon
Market share of the supplier
#15

What is the concept of consumer surplus?

The difference between the minimum price a consumer is willing to pay and the price they actually pay.
The difference between the quantity demanded and the quantity supplied at the market equilibrium.
The additional satisfaction gained from consuming one more unit of a good.
The total revenue earned by producers.
#16

What is a Giffen good?

A good with an income elasticity greater than 1.
A good with an income elasticity less than 1.
A good with a positive income elasticity.
A good with a negative income elasticity.
#17

What is the concept of producer surplus?

The difference between the minimum price a producer is willing to accept and the price they actually receive.
The difference between the quantity demanded and the quantity supplied at the market equilibrium.
The additional satisfaction gained from consuming one more unit of a good.
The total revenue earned by producers.
#18

What is the difference between a change in supply and a change in quantity supplied?

A change in supply results from a change in price, while a change in quantity supplied results from a change in any other factor.
A change in supply results from a change in any factor other than price, while a change in quantity supplied results from a change in price.
A change in supply results from a change in both price and quantity supplied, while a change in quantity supplied results from a change in any other factor.
A change in supply results from a change in quantity supplied, while a change in quantity supplied results from a change in supply.

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