#1
Which of the following causes a movement along the demand curve?
Change in consumer income
Change in the price of the good itself
Change in the price of substitutes
Change in the number of consumers
#2
What does the term 'market equilibrium' refer to?
A situation where there is excess demand for a good
A situation where there is excess supply of a good
A situation where quantity demanded equals quantity supplied
A situation where quantity demanded is greater than quantity supplied
#3
Which factor does NOT affect demand?
Consumer preferences
Income of consumers
Price of the good
Cost of production
#4
What is the relationship between price and quantity supplied, according to the law of supply?
Direct relationship
Inverse relationship
No relationship
It depends on the elasticity of supply
#5
What does a downward-sloping demand curve imply?
Consumers demand more as the price increases
Consumers demand less as the price increases
Consumers demand more as the price decreases
Consumers demand less as the price decreases
#6
What does the term 'market demand' refer to?
The total amount of a good or service that all consumers are willing and able to purchase at a given price
The total amount of a good or service that a single consumer is willing and able to purchase at a given price
The amount of a good or service that producers are willing and able to supply at a given price
The amount of a good or service that consumers are willing and able to supply at a given price
#7
What is the law of demand?
As the price of a good increases, the quantity demanded decreases
As the price of a good decreases, the quantity demanded increases
As the price of a good increases, the quantity supplied increases
As the price of a good decreases, the quantity supplied decreases
#8
What happens to the equilibrium price and quantity when demand increases and supply decreases?
Price increases, quantity increases
Price increases, quantity decreases
Price decreases, quantity increases
Price decreases, quantity decreases
#9
In economics, what does 'elasticity' measure?
The responsiveness of quantity demanded to a change in price
The total revenue earned by producers
The total cost incurred by consumers
The equilibrium price in the market
#10
What is a 'price ceiling' in a market?
A maximum price set by the government to prevent prices from rising above a certain level
A minimum price set by the government to ensure producers receive a fair income
A strategy used by producers to lower prices and attract more consumers
A pricing strategy where prices continuously fluctuate based on demand and supply
#11
What is the relationship between price elasticity of demand and total revenue?
They move in the same direction
They move in opposite directions
There is no relationship between them
It depends on the type of good
#12
Which of the following is NOT a determinant of supply?
Technology
Government policies
Consumer income
Cost of production
#13
What does the term 'price elasticity of supply' measure?
The responsiveness of quantity demanded to a change in price
The responsiveness of quantity supplied to a change in price
The responsiveness of quantity demanded to a change in income
The responsiveness of quantity supplied to a change in income
#14
Which of the following would likely lead to an increase in demand for a normal good?
A decrease in consumer income
An increase in the price of complementary goods
A decrease in the price of substitute goods
An increase in consumer income
#15
What is the 'law of supply' in economics?
As the price of a good increases, the quantity demanded also increases
As the price of a good increases, the quantity supplied decreases
As the price of a good decreases, the quantity supplied also decreases
As the price of a good decreases, the quantity supplied increases
#16
What is the 'cross-price elasticity of demand'?
The responsiveness of quantity demanded of one good to a change in the price of another good
The responsiveness of quantity demanded to a change in income
The responsiveness of quantity demanded to a change in the price of the same good
The responsiveness of quantity demanded to a change in the price of complementary goods
#17
What is the main effect of a subsidy on a market?
Increase in equilibrium price and quantity
Decrease in equilibrium price and quantity
Increase in equilibrium price, decrease in equilibrium quantity
Decrease in equilibrium price, increase in equilibrium quantity
#18
What is the difference between a change in demand and a change in quantity demanded?
A change in demand is caused by factors other than price, while a change in quantity demanded is solely due to a change in price
A change in demand affects the entire demand curve, while a change in quantity demanded involves movement along the demand curve
A change in demand occurs when there is a shift in the demand curve, while a change in quantity demanded occurs when there is a change in consumer preferences
There is no difference between a change in demand and a change in quantity demanded
#19
What is a 'normal good'?
A good for which demand increases as income decreases
A good for which demand decreases as income decreases
A good for which demand increases as income increases
A good for which demand decreases as income increases