A Microeconomics Quiz On Supply And Demand
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In the study of business and microeconomics, you’ll come across the terms “supply and demand” fairly often. It’s the concept by which we judge how much of a particular good or service the market can provide in relation to how much of the product is desired by the buyers. Naturally, the rate at which the supply increase directly correlates to how high demand is. Want to know more? Take the quiz!
- 1.A perfectly competitive market consists of products that are all slightly different from one another
- A.
True
- B.
False
- 2.A monopolistic market has only one seller
- A.
True
- B.
False
- 3.The law of demand states that an increase in the price of a good decreases the demand for that good.
- A.
True
- B.
False
- 4.If apples and oranges are substitutes, an increase in the price of apples will decrease the demand for oranges.
- A.
True
- B.
False
- 5.If golf clubs and golf balls are complements, an increase in the price of gold clubs will decrease the demand for golf balls.
- A.
True
- B.
False
- 6.If consumers expect the price of shoes to rise, there will be an increase in the demand for shoes today.
- A.
True
- B.
False
- 7.The law of supply states that an increase in the price of a good increases the quantity supplied of that good
- A.
True
- B.
False
- 8.An increase in the price of steel will shift the supply of automobiles of the right
- A.
True
- B.
False
- 9.When the price of a good is below the equillibrium price, it causes a surplus.
- A.
True
- B.
False
- 10.The market supply curve is the horizontal summation of the individual supply curves.
- A.
True
- B.
False
- 11.If there is a shortage of a good, then the price of the good tends to fall.
- A.
True
- B.
False
- 12.If pencils and paper are complements, an increase in the price of pencils causes the demand for paper to decrease or shift to the left.
- A.
True
- B.
False
- 13.If Coca-Cola and Pepsi are substitutes, an increase in the price of Coca-Cola will cause an incrase in the equilibrium price and quanitity in the market for Pepsi
- A.
True
- B.
False
- 14.An advance in the technology employed to manufacture Rollerblades will result in a decrease in the equilibrium price and an increase in the equilibrium quantity in the market for Rollerblades.
- A.
True
- B.
False
- 15.If there is an increase in supply accompanied by a decrease in demand for coffee, then there will be a decrease in both the equilibrium price and quantity in the market for coffee.
- A.
True
- B.
False
- 16.A perfectly competitive market has
- A.
Only one seller
- B.
At least a few sellers
- C.
Many buyers and sellers
- D.
Firms that set their own prices
- E.
None of the above
- 17.If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are
- A.
Substitutes
- B.
Complements
- C.
Normal goods
- D.
Inferior goods
- E.
None of the above
- 18.The law of demand states that an increase in the price of a good
- A.
Decreases the demand for the good
- B.
Decreases the quantity demanded for that good
- C.
Increases the supply of the good
- D.
Increases the quantity supplied of that good
- E.
Does none of the above
- 19.The law of supply states that an increase in the price of a good
- A.
Decreases the demand for that good
- B.
Decreases the quantity demanded for that good
- C.
Increases the supply of that good
- D.
Increases the quantity supplied of that good
- E.
Does none of the above
- 20.If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is
- A.
A complementary good
- B.
A substitute good
- C.
A normal good
- D.
An inferior good
- E.
None of the above
- 21.A monopolistic market has
- A.
Only one seller
- B.
At least a few sellers
- C.
Many buyers and sellers
- D.
Firms that are price takers
- E.
None of the above
- 22.Which of the following shifts the demand for watches to the right?
- A.
A decrease in the price of watches
- B.
A decrease in consumer incomes if watches are a normal good
- C.
A decrease in the price of watch batteries if watch batteries and watches are complements
- D.
An increase in the price of watches
- E.
None of the above
- 23.All of the following shift the supply of watches to the right except
- A.
An increase in the price of watches
- B.
An advance in the technology used to manufacture watches
- C.
A decrease in the wage of workers employed to manufacture watches
- D.
Manufactures' expectations of lower watch prices in the future
- E.
All of the above cause an increase in the supply of watches
- 24.If the price of a good is above the equilibrium price,
- A.
There is a surplus and the price will rise
- B.
There is a surplus and the price will fall
- C.
There is a shortage and the price will rise
- D.
There is a shortage and the price will fall
- E.
The quantity demanded is equal to the quantity supplied and the price remains unchanged
- 25.If the price of a good is below the equilibrium price,
- A.
There is a surplus and the price will rise
- B.
There is a surplus and the price will fall
- C.
There is a shortage and the price will rise
- D.
There is a shortage and the price will fall
- E.
The quantity demanded is equal to the quantity supplied and the price remains unchanged
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