Demand & Supply

10 Questions | By Sebuch | Updated: Mar 22, 2022 | Attempts: 16784

Questions

Settings

This quiz covers the basics of demand & supply. All questions come from your Introduction to Demand, Introduction to Supply, and Determining Price Notes. You will have 1 minute to answer each question.

Questions and Answers

1.

Which of the following is not a component of demand?
- A.
  
  Desire
- B.
  
  Surplus
- C.
  
  Ability
- D.
  
  Willingness
2.

The law of demand states that there is what type of relationship between price and quantity demanded?
3.

The demand curve slopes in which direction?
- A.
  
  Down
- B.
  
  Up
4.

When each additional unit of a product gives you less utility it is know as what?
- A.
  
  Marginal analysis
- B.
  
  Downward demand
- C.
  
  Diminishing marginal utility
- D.
  
  Decreasing desire
5.

The law of supply states there is what type of relationship between price and quantity supplied?
6.

The supply curve always slopes in what direction?
- A.
  
  Down
- B.
  
  Up
7.

The ideal price level is known as what?
8.

A surplus will occur for a product when the price is
- A.
  
  Too high.
- B.
  
  Too low.
9.

When there is a shortage what should be done?
- A.
  
  Increase supply
- B.
  
  Decrease price
- C.
  
  Decrease price
- D.
  
  Increase demand
10.

When graphing supply and demand, price is always on which axis?
- A.
  
  Horizontal
- B.
  
  Vertical