#1
Which of the following is a determinant of supply?
Consumer preferences
Government policies
Income of consumers
Price of related goods
#2
What does the law of demand state?
As the price of a good increases, the quantity demanded increases
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 decreases, the quantity demanded decreases
#3
What happens to the equilibrium price and quantity when demand increases and supply decreases?
Price increases; quantity decreases
Price decreases; quantity increases
Price decreases; quantity decreases
Price increases; quantity increases
#4
What is the impact on 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
#5
What is the concept of price elasticity of supply?
Measure of responsiveness of quantity demanded to a change in price
Measure of responsiveness of quantity supplied to a change in price
Measure of responsiveness of demand to a change in income
Measure of responsiveness of demand to a change in price
#6
What is a substitute good?
A good that is always consumed together with another good
A good that is consumed in place of another good
A good that has an inverse relationship with the price of another good
A good that has a direct relationship with the price of another good
#7
Which factor does NOT affect the elasticity of demand?
Availability of substitutes
Necessity of the good
Time horizon
Government regulations
#8
What is the concept of a price floor?
A legally established maximum price for a good or service
A legally established minimum price for a good or service
A price determined by the equilibrium of supply and demand
A price determined by the government intervention
#9
What is the cross-price elasticity of demand between two substitute goods?
Positive
Negative
Zero
Undefined
#10
What happens to the equilibrium price and quantity when supply increases and demand remains constant?
Price decreases; quantity decreases
Price decreases; quantity increases
Price increases; quantity decreases
Price increases; quantity increases
#11
Which of the following would NOT cause a shift in the demand curve?
Change in consumer preferences
Change in the price of a substitute good
Change in the price of the good itself
Change in the cost of production
#12
What is the concept of consumer surplus?
The additional benefit received by producers from selling a good
The additional benefit received by consumers from consuming a good
The difference between the highest price a consumer is willing to pay and the price they actually pay
The difference between the quantity supplied and the quantity demanded at the equilibrium price
#13
What is the price elasticity of demand formula?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Absolute change in quantity demanded / Absolute change in price
Absolute change in price / Absolute change in quantity demanded
#14
Which of the following is NOT a shift factor of the supply curve?
Changes in technology
Changes in input prices
Changes in consumer income
Changes in government policies
#15
What is the concept of price ceiling?
A legally established maximum price for a good or service
A legally established minimum price for a good or service
A price determined by the equilibrium of supply and demand
A price determined by the government intervention
#16
What is a complement good?
A good that is always consumed together with another good
A good that is consumed in place of another good
A good that has an inverse relationship with the price of another good
A good that has a direct relationship with the price of another good
#17
What is the concept of elasticity of supply?
Measure of responsiveness of quantity demanded to a change in price
Measure of responsiveness of quantity supplied to a change in price
Measure of responsiveness of demand to a change in income
Measure of responsiveness of demand to a change in price
#18
In a market with perfectly elastic demand, how does a change in price affect quantity demanded?
Quantity demanded remains constant
Quantity demanded increases significantly
Quantity demanded decreases significantly
Quantity demanded becomes zero
#19
What is the income elasticity of demand for a normal good?
Positive
Negative
Zero
Undefined
#20
In a market with perfectly inelastic supply, how does a change in price affect quantity supplied?
Quantity supplied remains constant
Quantity supplied increases significantly
Quantity supplied decreases significantly
Quantity supplied becomes zero
#21
In a market with perfectly elastic supply, how does a change in price affect quantity supplied?
Quantity supplied remains constant
Quantity supplied increases significantly
Quantity supplied decreases significantly
Quantity supplied becomes zero