Demand and Supply: Interactive Quizzes for Year 13 Economics

Question 1

Which factor would cause the supply curve to shift to the right?

Accepted Answer

Decrease in input costs

Answer

Increase in product price

Answer

Reduction in producers

Answer

Increase in producer taxes

Question 2

A downward shift in the supply curve indicates a:

Accepted Answer

Decrease in supply

Answer

Increase in supply

Answer

Change in consumer preferences

Answer

Change in price of a related good

Question 3

Which factor would **not** cause an increase in the quantity supplied of a consumer good?

Accepted Answer

A decrease in consumer demand for the good.

Answer

Technological advancements that lower production costs.

Answer

Government subsidies that lower production costs.

Question 4

At the equilibrium price:

Accepted Answer

Quantity demanded is equal to quantity supplied

Answer

Quantity demanded is greater than quantity supplied

Answer

Quantity demanded is less than quantity supplied

Answer

The market is not in equilibrium

Question 5

A price ceiling set below the equilibrium price will result in:

Accepted Answer

A shortage

Answer

A surplus

Answer

No change in the market

Answer

Increased consumer spending

Question 6

Which of the following is a characteristic of an elastic demand curve?

Accepted Answer

A small change in price leads to a large change in quantity demanded

Answer

A large change in price leads to a small change in quantity demanded

Answer

The demand curve is vertical

Answer

The demand curve is horizontal

Question 7

Marginal revenue is defined as:

Accepted Answer

The change in total revenue divided by the change in output

Answer

The change in output divided by the change in total revenue

Answer

Total revenue divided by output

Answer

Output divided by total revenue

Question 8

Which of the following is NOT a factor that affects the quantity of a good or service demanded?

Accepted Answer

Number of suppliers in the market

Answer

Consumer tastes and preferences

Answer

Price of the good

Answer

Income of consumers

Question 9

Which of the following would NOT cause a shift in the supply curve for a good?

Accepted Answer

Change in consumer tastes

Answer

Changes in input costs

Answer

Technological advancements

Answer

Government regulations

Question 10

Market equilibrium is achieved when:

Accepted Answer

Quantity demanded equals quantity supplied

Answer

Price is at its maximum

Answer

Price is at its minimum

Answer

Surplus exists

Question 11

If the government imposes a price ceiling below the equilibrium price, the result will be a:

Accepted Answer

Shortage

Answer

Surplus

Answer

No change in equilibrium

Answer

A shift in the demand curve

Question 12

Which of the following is a fundamental concept in economics that is closely related to supply and demand?

Accepted Answer

Elasticity

Answer

Marginal utility

Answer

Diminishing returns

Answer

Opportunity cost

Question 13

If the price elasticity of demand for a good is greater than 1, demand is considered:

Accepted Answer

Elastic

Answer

Inelastic

Answer

Unit elastic

Answer

Perfectly elastic

Question 14

In a perfectly competitive market, firms:

Accepted Answer

Are price takers

Answer

Face downward-sloping demand curves

Answer

Have control over market price

Answer

Produce differentiated products

Question 15

Which scenario would likely result in an increase in both the quantity supplied and quantity demanded of a product?

Accepted Answer

Increased consumer income and decreased production costs

Answer

Increased consumer preferences and decreased number of producers

Answer

Decreased consumer income and increased production costs

Answer

Decreased consumer preferences and increased number of producers

Question 16

When faced with market failures, what ethical principle should guide policymakers in deciding whether government intervention is appropriate?

Accepted Answer

Intervention should be considered when failures have significant negative consequences.

Answer

Intervention is always justified.

Answer

Market failures should be left unaddressed.

Question 17

Which factor would increase the demand for a normal good?

Accepted Answer

A rise in consumer income

Answer

A fall in consumer income

Answer

A price increase in a substitute good

Answer

A price increase in a complementary good

Question 18

Market equilibrium occurs when:

Accepted Answer

Quantity demanded equals quantity supplied

Answer

Price is above equilibrium

Answer

Quantity demanded is greater than quantity supplied

Answer

Quantity supplied is greater than quantity demanded

Question 19

A price ceiling below equilibrium price could potentially lead to:

Accepted Answer

Shortage

Answer

Surplus

Answer

Unchanged quantity

Answer

Increased consumer welfare

Question 20

An elasticity of demand of -2 implies that:

Accepted Answer

A 1% price change leads to a -2% change in quantity demanded

Answer

A 1% price change leads to a 2% change in quantity demanded

Answer

A 2% price change leads to a -1% change in quantity demanded

Answer

Quantity demanded is unaffected by price changes

Question 21

A perfectly inelastic demand curve indicates that:

Accepted Answer

Quantity demanded remains unchanged despite price changes

Answer

Quantity demanded changes proportionally to price changes

Answer

Quantity demanded changes opposite to price changes

Answer

Quantity demanded changes by a fixed amount for any price change

Question 22

Which of the following is NOT a determinant of demand?

Accepted Answer

Government regulations

Answer

Consumer tastes and preferences

Answer

Price of related goods

Answer

Population size

Question 23

If the price of a good increases and the supply remains constant, what is the most likely impact on market equilibrium?

Accepted Answer

Equilibrium price will increase, equilibrium quantity will decrease

Answer

Equilibrium price will decrease, equilibrium quantity will increase

Answer

Equilibrium price and quantity will both increase

Answer

Equilibrium price and quantity will both decrease

Question 24

Which of the following government interventions is designed to increase consumer surplus in a market?

Accepted Answer

Subsidy on supply

Answer

Price ceiling below equilibrium price

Answer

Price floor above equilibrium price

Answer

Tax on demand

Question 25

What does the law of diminishing marginal utility state?

Accepted Answer

As the quantity of a good consumed increases, the additional satisfaction derived from each additional unit decreases.

Answer

As the price of a good increases, the demand for the good increases.

Answer

The price of a good is equal to its marginal cost.

Answer

The demand curve for a good is upward sloping.

Question 26

What is the general slope of a supply curve?

Accepted Answer

Positive

Answer

Negative

Answer

Zero

Answer

Variable

Question 27

Which of the following is NOT a factor that would cause a rightward shift in the supply curve?

Accepted Answer

Increased input costs

Answer

Advancements in technology

Answer

Government subsidies

Answer

Improved infrastructure

Question 28

What does the elasticity of demand measure?

Accepted Answer

The responsiveness of quantity demanded to changes in price

Answer

The responsiveness of quantity supplied to changes in price

Answer

The ratio of price to quantity

Answer

The slope of the demand curve

Question 29

What would be the effect of a tax on supply on market equilibrium?

Accepted Answer

Equilibrium price will increase, equilibrium quantity will decrease

Answer

Equilibrium price will decrease, equilibrium quantity will increase

Answer

Equilibrium price and quantity will both increase

Answer

Equilibrium price and quantity will both decrease

Question 30

Which of the following is NOT a determinant of demand?

Accepted Answer

Interest rates

Answer

Price of the good

Answer

Tastes and preferences

Answer

Consumer income

Question 31

A shift in the supply curve to the right indicates that:

Accepted Answer

Supply has increased

Answer

Demand has increased

Answer

Supply has decreased

Answer

Demand has decreased

Question 32

At market equilibrium, the quantity supplied is:

Accepted Answer

Equal to the quantity demanded

Answer

Not related to the quantity demanded

Answer

Less than the quantity demanded

Answer

Greater than the quantity demanded

Question 33

A price ceiling set below the equilibrium price will lead to:

Accepted Answer

A shortage

Answer

No change in quantity

Answer

A surplus

Answer

An increase in supply

Question 34

The concept of consumer surplus refers to:

Accepted Answer

The difference between the maximum price consumers are willing to pay and the actual price

Answer

The total amount of money consumers spend on a good

Answer

The difference between the minimum price producers are willing to accept and the actual price

Question 35

The law of diminishing marginal utility states that:

Accepted Answer

As more units of a good are consumed, the additional satisfaction gained from each unit decreases

Answer

As more units of a good are consumed, the total satisfaction gained increases at a decreasing rate