Supply And Demand - Practice Quiz

10 Questions | Total Attempts: 6136

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Supply And Demand - Practice Quiz - 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.


Questions and Answers
  • 1. 
    A group of people buying and selling goods or services. This is the definition for:
    • A. 

      Demand

    • B. 

      Equilibrium

    • C. 

      Market

    • D. 

      Supply

  • 2. 
    The desire to own a product and the ability/ willingness to pay for it. This is the definition for:
    • A. 

      Supply

    • B. 

      Elasticity

    • C. 

      Demand

    • D. 

      Market

  • 3. 
    With regard to demand, a change in price of a product/service results in movement along the curve.
    • A. 

      True

    • B. 

      False

  • 4. 
    In the Law Of Supply an increase in price results in:
    • A. 

      Decrease of quantity supplied

    • B. 

      Increase of quantity supplied

  • 5. 
    The supply curve shows the relationship of quantity and price demanded.
    • A. 

      True

    • B. 

      False

  • 6. 
    What occurs when quantity supplied is greater than quantity demanded at ruling price?
    • A. 

      Excess Demand

    • B. 

      Equilibrium Price

    • C. 

      Comparative Static Analysis

    • D. 

      Excess Supply

  • 7. 
    When consumer income rises what type of good decreases in demand?
    • A. 

      Inferior

    • B. 

      Normal

  • 8. 
    Which 2 of the following would be considered to be normal goods?
    • A. 

      TV/ Radio

    • B. 

      Mobile Phone

    • C. 

      Public Transport

    • D. 

      Bargain Goods

  • 9. 
    The Law Of Demand helps to explain social behavior.
    • A. 

      True

    • B. 

      False

  • 10. 
    The _________ is the price where supply of quantity equals quantity demanded
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