Supply And Demand - Practice Quiz

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Dwessler
D
Dwessler
Community Contributor
Quizzes Created: 18 | Total Attempts: 34,289
| Attempts: 8,169
Quiz Flashcard
SettingsSettings
Please wait...
  • 1/10 Questions

    A group of people buying and selling goods or services. This is the definition for:

    • Demand
    • Equilibrium
    • Market
    • Supply
Please wait...
About This Quiz

Supply and demand affects the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price. This is the major market driver and hence necessary to know about.

Supply And Demand - Practice Quiz - Quiz

Quiz Preview

  • 2. 

    With regard to demand, a change in price of a product/service results in movement along the curve.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A change in price of a product/service leads to movement along the demand curve because price is one of the key factors that affects the quantity demanded. When the price of a product/service increases, the quantity demanded usually decreases, leading to a movement upwards along the demand curve. Conversely, when the price decreases, the quantity demanded usually increases, resulting in a movement downwards along the demand curve. Therefore, it is true that a change in price of a product/service results in movement along the curve.

    Rate this question:

  • 3. 

    What occurs when quantity supplied is greater than quantity demanded at ruling price?

    • Excess Demand

    • Equilibrium Price

    • Comparative Static Analysis

    • Excess Supply

    Correct Answer
    A. Excess Supply
    Explanation
    When quantity supplied is greater than quantity demanded at the ruling price, it creates a situation called "excess supply." This means that there is an oversupply of the product in the market, and sellers are unable to sell all of their goods. As a result, they may be forced to lower the price in order to stimulate demand and clear the excess supply. This imbalance in supply and demand can lead to a decrease in prices and potentially affect the profitability of producers.

    Rate this question:

  • 4. 

    The desire to own a product and the ability/ willingness to pay for it. This is the definition for:

    • Supply

    • Elasticity

    • Demand

    • Market

    Correct Answer
    A. Demand
    Explanation
    Demand refers to the desire or need of consumers to own a particular product or service, along with their willingness and ability to pay for it. It represents the quantity of a product or service that consumers are willing to buy at a given price. In other words, demand reflects the relationship between price and quantity demanded, indicating how much consumers are willing to purchase at different price levels.

    Rate this question:

  • 5. 

    When consumer income rises what type of good decreases in demand?

    • Inferior

    • Normal

    Correct Answer
    A. Inferior
    Explanation
    When consumer income rises, the demand for inferior goods decreases. Inferior goods are those for which demand decreases as consumer income increases. This is because as consumers have more disposable income, they tend to switch to higher quality or more expensive alternatives, leading to a decrease in demand for inferior goods.

    Rate this question:

  • 6. 

    The _________ is the price where supply of quantity equals quantity demanded

    Correct Answer
    Equilibrium
    equilibrium
    equalibrium
    equalibream
    Explanation
    The correct answer is "Equilibrium." In economics, equilibrium refers to the point where the quantity of a good or service supplied is equal to the quantity demanded. At this price, there is no shortage or surplus in the market, and both buyers and sellers are satisfied. The other options, "equilibrium," "equalibrium," and "equalibream," are misspellings and do not accurately represent the concept.

    Rate this question:

  • 7. 

    In the Law Of Supply an increase in price results in:

    • Decrease of quantity supplied

    • Increase of quantity supplied

    Correct Answer
    A. Increase of quantity supplied
    Explanation
    An increase in price results in an increase in the quantity supplied according to the Law of Supply. This means that as the price of a good or service increases, producers are willing to supply more of it to the market. This is because higher prices incentivize producers to allocate more resources and invest in the production of the good, leading to an increase in the quantity supplied.

    Rate this question:

  • 8. 

    The supply curve shows the relationship of quantity and price demanded.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The demand curve actually shows the relationship of quantity and price demanded.

    Rate this question:

  • 9. 

    Which 2 of the following would be considered to be normal goods?

    • TV/ Radio

    • Mobile Phone

    • Public Transport

    • Bargain Goods

    Correct Answer(s)
    A. TV/ Radio
    A. Mobile Phone
    Explanation
    TV/Radio and Mobile Phone would be considered normal goods because they are both products that people typically purchase more of as their income increases. As people's income rises, they have more disposable income to spend on luxury items like TVs, radios, and mobile phones. Therefore, the demand for these goods tends to increase with higher income levels, making them normal goods. On the other hand, Public Transport and Bargain Goods are not normal goods as their demand does not necessarily increase with higher income levels.

    Rate this question:

  • 10. 

    The Law Of Demand helps to explain social behavior.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The Law Of Demand actually helps to explain economic behavior.

    Rate this question:

Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Mar 31, 2015
    Quiz Created by
    Dwessler
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.