Supply and Market Equilibrium in Economics Quiz

Test your knowledge on supply, market equilibrium, elasticity, and more with these microeconomics questions. Dive in now!

Practice Learn Test

What does the term 'supply' refer to in economics?

The amount of money in circulation within an economy

The quantity of goods and services producers are willing to sell at various prices

The demand for a particular good or service

The total wealth of a nation

What is market equilibrium?

The point where demand exceeds supply

The point where supply exceeds demand

The point where quantity demanded equals quantity supplied

The point where there is no demand for a product

Which of the following is NOT a determinant of supply?

Technology

Government regulations

Consumer preferences

Input prices

What is a supply schedule?

A graph showing the relationship between the price of a good and the quantity supplied

A table showing the relationship between the price of a good and the quantity supplied

A graph showing the relationship between the price of a good and the quantity demanded

A table showing the relationship between the price of a good and the quantity demanded

What is a determinant of supply?

Consumer income

Tastes and preferences

Price of related goods

Number of buyers

Which of the following factors can cause a shift in the supply curve?

Changes in consumer preferences

Changes in the price of related goods

Changes in technology

Changes in consumer income

What happens to the market price and quantity exchanged when there is a shortage in the market?

Price increases and quantity exchanged decreases

Price decreases and quantity exchanged increases

Price decreases and quantity exchanged decreases

Price increases and quantity exchanged increases

What is the law of supply?

As the price of a good increases, the quantity supplied increases, and vice versa, ceteris paribus

As the price of a good increases, the quantity supplied decreases, and vice versa, ceteris paribus

As the price of a good increases, the demand for the good increases, and vice versa, ceteris paribus

As the price of a good decreases, the demand for the good increases, and vice versa, ceteris paribus

What is a price ceiling?

A legally established maximum price for a good or service

A legally established minimum price for a good or service

A situation where demand exceeds supply

A situation where supply exceeds demand

#10

What is a subsidy?

A tax imposed on the production or sale of a good

A payment made by the government to producers to reduce their costs of production

A situation where the quantity demanded exceeds the quantity supplied

A situation where the quantity supplied exceeds the quantity demanded

#11

In the context of supply, what is the difference between a movement along the supply curve and a shift in the supply curve?

There is no difference

A movement is caused by a change in price, while a shift is caused by factors other than price

A shift is caused by a change in price, while a movement is caused by factors other than price

Both are caused by changes in price

#12

What is the price elasticity of supply?

A measure of how much the quantity supplied of a good responds to a change in the price of that good

A measure of how much the quantity supplied of a good responds to a change in the income of consumers

A measure of how much the demand for a good responds to a change in the price of that good

A measure of how much the demand for a good responds to a change in the income of consumers

#13

What is a perfectly elastic supply?

A situation where the quantity supplied is perfectly responsive to changes in price

A situation where the quantity supplied is not responsive to changes in price

A situation where the quantity supplied is responsive to changes in price, but not infinitely so

A situation where the quantity supplied is not responsive to changes in demand

#14

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

A change in supply involves a shift of the entire supply curve, while a change in quantity supplied involves movement along the supply curve

A change in quantity supplied involves a shift of the entire supply curve, while a change in supply involves movement along the supply curve

Both involve a shift of the entire supply curve

Both involve movement along the supply curve

#15

What is the price elasticity of supply formula?

Percentage change in quantity supplied divided by percentage change in price

Percentage change in price divided by percentage change in quantity supplied

Change in quantity supplied divided by change in price

Change in price divided by change in quantity supplied