Supply and Market Forces in Economics Quiz
Test your knowledge on supply, market equilibrium, elasticity, and determinants in microeconomics. Take the quiz now!
#1
Which of the following best defines the law of supply?
As the price of a good increases, the quantity supplied increases.
As the price of a good increases, the quantity supplied decreases.
As the price of a good decreases, the quantity supplied increases.
As the price of a good decreases, the quantity supplied decreases.
#2
What does a shift to the right in the supply curve indicate?
Decrease in supply
Increase in supply
Decrease in demand
Increase in demand
#3
Which of the following is an example of a market force?
Government regulations
Consumer income
Technological advancements
Weather conditions
#4
Which of the following is a shift factor of the demand curve?
Change in price of the good itself
Change in consumer income
Change in the price of a substitute good
Change in the price of a complementary good
#5
What is the relationship between price and quantity supplied according to the law of supply?
Directly proportional
Inversely proportional
Unrelated
Exponential
#6
Which of the following is NOT a determinant of supply?
Technology
Government policies
Consumer preferences
Resource prices
#7
What is the relationship between price elasticity of supply and time?
Price elasticity of supply is high in the short run and low in the long run.
Price elasticity of supply is low in the short run and high in the long run.
Price elasticity of supply remains constant regardless of time period.
Price elasticity of supply varies randomly with time.
#8
What is the price elasticity of supply formula?
Percentage change in quantity supplied / Percentage change in price
Percentage change in price / Percentage change in quantity supplied
Change in quantity supplied / Change in price
Change in price / Change in quantity supplied
#9
What happens to the equilibrium price and quantity when demand increases and supply decreases?
Price increases, quantity increases
Price decreases, quantity increases
Price increases, quantity decreases
Price decreases, quantity decreases
#10
Which of the following is a characteristic of a perfectly elastic supply curve?
It is vertical.
It is horizontal.
It is upward sloping.
It is downward sloping.
#11
In economics, what is the market equilibrium?
The point where quantity supplied equals quantity demanded.
The point where quantity supplied exceeds quantity demanded.
The point where quantity demanded exceeds quantity supplied.
The point where price is at its maximum.
#12
What is the difference between a change in quantity supplied and a change in supply?
A change in quantity supplied is caused by a change in price, while a change in supply is caused by a non-price determinant.
A change in quantity supplied is caused by a non-price determinant, while a change in supply is caused by a change in price.
Both a change in quantity supplied and a change in supply are caused by changes in price.
Both a change in quantity supplied and a change in supply are caused by non-price determinants.
#13
What is the relationship between the elasticity of supply and the slope of the supply curve?
As elasticity increases, the slope becomes steeper.
As elasticity increases, the slope becomes flatter.
There is no relationship between elasticity and slope.
As elasticity decreases, the slope becomes steeper.
#14
Which of the following is a characteristic of a perfectly inelastic supply curve?
It is vertical.
It is horizontal.
It is upward sloping.
It is downward sloping.
#15
What is the main difference between a change in supply and a change in quantity supplied?
A change in supply is caused by a change in price, while a change in quantity supplied is caused by a non-price determinant.
A change in supply is caused by a non-price determinant, while a change in quantity supplied is caused by a change in price.
Both a change in supply and a change in quantity supplied are caused by changes in price.
Both a change in supply and a change in quantity supplied are caused by non-price determinants.
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