Demand and Supply: Interactive Learning Quizzes for Year 13 Economics

Question 1

How do advertising and marketing campaigns affect the demand curve?

Accepted Answer

Advertising and marketing campaigns can shift the demand curve right by enhancing consumer perceptions of product quality.

Answer

Advertising and marketing campaigns can shift the demand curve left by decreasing consumer awareness.

Answer

Advertising and marketing campaigns do not influence the demand curve.

Question 2

How does behavioral economics enhance our understanding of how individuals behave in markets?

Accepted Answer

It incorporates psychological factors that can influence individual choices.

Answer

It assumes that consumers and producers always make rational decisions.

Answer

It ignores the impact of external factors on market behavior.

Answer

It assumes that everyone has perfect knowledge and acts rationally.

Question 3

At the point of market equilibrium, what is the relationship between quantity supplied and quantity demanded?

Accepted Answer

Quantity supplied is equal to quantity demanded.

Answer

Quantity supplied exceeds quantity demanded.

Answer

Quantity demanded exceeds quantity supplied.

Answer

Quantity supplied and quantity demanded are unrelated.

Question 4

What is the likely impact of a government subsidy on the supply of a good?

Accepted Answer

Increase in supply

Answer

Decrease in supply

Answer

No impact on supply

Answer

Indeterminate impact without more information.

Question 5

Which of the following is an example of a price ceiling?

Accepted Answer

A maximum price set below the equilibrium price by the government

Answer

A minimum price set above the equilibrium price by the government

Answer

A tax on the production of a good

Answer

A quota on the sale of a good

Question 6

What is the general elasticity of demand for a good considered a luxury?

Accepted Answer

Elastic

Answer

Inelastic

Answer

Unit elastic

Answer

Perfectly elastic

Question 7

What is the likely impact of a technological innovation on the supply of a good?

Accepted Answer

Rightward shift of the supply curve

Answer

Leftward shift of the supply curve

Answer

No impact on the supply curve

Answer

Indeterminate impact without more information.

Question 8

Which of the following is an example of a positive externality?

Accepted Answer

The enjoyment of a public park

Answer

Pollution from a factory

Answer

Traffic congestion

Answer

Noise from a construction site

Question 9

What is the purpose of a price floor?

Accepted Answer

To set a minimum price for a good

Answer

To set a maximum price for a good

Answer

To subsidize the production of a good

Answer

To prevent a surplus in the market

Question 10

Which of the following scenarios illustrates a positive shift in the demand curve for a normal good?

Accepted Answer

A consumer experiences a rise in their income

Answer

A substitute good becomes more expensive

Answer

The price of the good itself falls

Answer

A technological advancement increases supply

Question 11

In a perfectly competitive market, the supply curve is characteristically:

Accepted Answer

A horizontal line

Answer

A downward-sloping line

Answer

An upward-sloping line

Answer

A vertical line

Question 12

When the quantity supplied surpasses the quantity demanded at a specific price point, the market is experiencing:

Accepted Answer

Surplus

Answer

Equilibrium

Answer

Shortage

Answer

Disequilibrium

Question 13

A government-imposed price ceiling will typically result in a:

Accepted Answer

Shortage

Answer

Surplus

Answer

Increase in consumer welfare

Answer

Decrease in producer welfare

Question 14

Which of the following is NOT a factor influencing the elasticity of demand?

Accepted Answer

Weather conditions

Answer

Availability of substitutes

Answer

Proportion of income spent on the good

Answer

Time horizon

Question 15

A cross-price elasticity of demand measures the:

Accepted Answer

Responsiveness of demand for one good to a change in the price of a different good

Answer

Responsiveness of demand for a good to a change in its own price

Answer

Responsiveness of supply for a good to a change in its own price

Answer

Responsiveness of supply for a good to a change in the price of a different good

Question 16

Which of the following is a distinctive trait of a Giffen good?

Accepted Answer

A negative income elasticity of demand

Answer

A positive income elasticity of demand

Answer

A positive cross-price elasticity of demand

Answer

A negative cross-price elasticity of demand

Question 17

A market with a high level of seller concentration is likely to exhibit:

Accepted Answer

Oligopoly

Answer

Perfect competition

Answer

Monopoly

Answer

Monopolistic competition

Question 18

Which of the following is NOT a determinant of quantity demanded?

Accepted Answer

Size of the firm producing the good

Answer

Consumer preferences

Answer

Consumer income

Answer

Price of a complementary good

Question 19

Which type of government intervention involves setting a minimum price above the equilibrium price?

Accepted Answer

Price floor

Answer

Price ceiling

Answer

Tax

Answer

Subsidy

Question 20

What is the effect of a subsidy on the quantity supplied of a good?

Accepted Answer

Increase

Answer

Decrease

Answer

No change

Answer

Depends on the price elasticity of supply

Question 21

In a market with a surplus, what will happen?

Accepted Answer

The price will tend to decrease

Answer

The price will tend to increase

Answer

The quantity supplied will equal the quantity demanded

Answer

The quantity demanded will exceed the quantity supplied

Question 22

Which of the following is NOT a defining characteristic of a perfectly competitive market?

Accepted Answer

Price-controlling firms

Answer

Numerous buyers and sellers

Answer

Similar products

Answer

No barriers to entry or exit

Question 23

What is the common effect of imposing a price ceiling in a market?

Accepted Answer

Creating a shortage

Answer

Creating a surplus

Answer

Maintaining market equilibrium

Answer

Increasing both supply and demand

Question 24

Which example represents a positive externality?

Accepted Answer

Obtaining an education

Answer

Industrial air pollution

Answer

Loud traffic noise

Answer

Water contamination

Question 25

What is the slope of the supply curve for a product with perfect elasticity?

Accepted Answer

Infinite

Answer

Positive

Answer

Negative

Answer

Zero

Question 26

Which of the following is NOT a factor of production?

Accepted Answer

Consumer preferences

Answer

Natural resources

Answer

Human labor

Answer

Capital equipment

Question 27

What does the law of diminishing marginal utility state?

Accepted Answer

As you continue to consume more of a product, the additional satisfaction gained decreases.

Answer

As you continue to consume more of a product, you are willing to pay more for it.

Answer

As you continue to consume more of a product, the quantity you demand decreases.

Answer

As you continue to consume more of a product, your total satisfaction increases.

Question 28

Which of the following does NOT influence the position of the long-run supply curve?

Accepted Answer

Consumer preferences

Answer

Production costs

Answer

Technological advancements

Answer

Government regulations

Question 29

What is the concept of consumer surplus?

Accepted Answer

The difference between the highest price a consumer is willing to pay and the actual price they pay.

Answer

The difference between a firm's total revenue and its total production cost.

Answer

The difference between quantity demanded and quantity supplied.

Answer

The difference between equilibrium price and marginal cost.

Question 30

Which among the following is NOT a determinant of demand?

Accepted Answer

Number of producers in the market

Answer

Price of the good or service

Answer

Consumer preferences

Answer

Income of consumers

Question 31

In a market, the equilibrium price is determined as the price at which:

Accepted Answer

Quantity demanded equals quantity supplied

Answer

Producers maximize their profits

Answer

Consumers maximize their satisfaction

Answer

Government sets a fixed price

Question 32

For a normal good, how does an increase in consumer income typically affect the demand curve?

Accepted Answer

Shifts to the right

Answer

Shifts to the left

Answer

Becomes steeper

Answer

Becomes flatter

Question 33

Which among the following is NOT a type of government intervention in a market?

Accepted Answer

Laissez-faire

Answer

Price ceiling

Answer

Subsidy

Answer

Tax

Question 34

What is the immediate effect of a price ceiling set below the equilibrium price?

Accepted Answer

Excess demand

Answer

Excess supply

Answer

Market equilibrium

Answer

No change in quantity demanded or supplied

Question 35

What is the impact of a subsidy on producer surplus?

Accepted Answer

Increases

Answer

Decreases

Answer

No change

Answer

Depends on the market structure

Question 36

How does consumer surplus differ from economic surplus?

Accepted Answer

Consumer surplus is the benefit to consumers, while economic surplus is the benefit to society as a whole

Answer

Economic surplus is the benefit to consumers, while consumer surplus is the benefit to producers

Answer

Consumer surplus and economic surplus are the same thing

Answer

There is no correct answer

Question 37

Which of the following is NOT a determinant of demand?

Accepted Answer

Global political climate

Answer

Price of the good

Answer

Income of consumers

Answer

Consumer preferences

Question 38

A shift in the supply curve to the right is expected to result in:

Accepted Answer

An increase in equilibrium quantity

Answer

A decrease in equilibrium quantity

Answer

An increase in equilibrium price

Answer

A decrease in equilibrium price

Question 39

Which of the following represents a binding price floor in a market?

Accepted Answer

The minimum price set by the government above the equilibrium price

Answer

The minimum price set by the government below the equilibrium price

Answer

The maximum price set by the government above the equilibrium price

Answer

The maximum price set by the government below the equilibrium price

Question 40

Consumer surplus refers to the:

Accepted Answer

Difference between the price consumers are willing to pay and the price they actually pay

Answer

Difference between the price producers are willing to accept and the price they receive

Answer

Total revenue earned by producers

Answer

Total expenditure incurred by consumers

Question 41

A movement along a demand curve is caused by a change in:

Accepted Answer

Price of the good

Answer

Consumer income

Answer

Consumer preferences

Answer

Number of consumers in the market

Question 42

Which of the following is a determinant of demand for a normal good?

Accepted Answer

Consumer income

Answer

Price of related goods

Answer

Government regulations

Answer

Weather conditions

Question 43

The price elasticity of demand measures the:

Accepted Answer

Responsiveness of quantity demanded to a change in price

Answer

Responsiveness of quantity supplied to a change in price

Answer

Responsiveness of total revenue to a change in price

Answer

Responsiveness of consumer surplus to a change in price

Question 44

Which of the following is NOT a factor influencing the elasticity of demand?

Accepted Answer

Government policies

Answer

Availability of substitutes

Answer

Importance of the good in the consumer's budget

Answer

Time horizon considered

Question 45

A price ceiling set below the equilibrium price is likely to lead to:

Accepted Answer

Shortage in the market

Answer

Surplus in the market

Answer

No change in market equilibrium

Answer

Both surplus and shortage in the market

Question 46

Which of the following is not directly related to the demand for a product?

Accepted Answer

Number of producers in the market

Answer

Price of the good

Answer

Consumer tastes and preferences

Answer

Government regulations

Question 47

Which of the following is a defining characteristic of a perfectly elastic supply curve?

Accepted Answer

Horizontal

Answer

Vertical

Answer

Upward sloping

Answer

Downward sloping

Question 48

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

Accepted Answer

A shortage

Answer

A surplus

Answer

No change in quantity supplied

Answer

No change in quantity demanded

Question 49

Which of the following is a potential economic consequence of a leftward shift in the demand curve?

Accepted Answer

Lower equilibrium price

Answer

Increased producer surplus

Answer

Higher consumer surplus

Answer

Increased quantity demanded

Question 50

The price elasticity of demand is calculated as the:

Accepted Answer

Percentage change in quantity demanded divided by the percentage change in price

Answer

Percentage change in price divided by the percentage change in quantity demanded

Answer

Total change in quantity demanded divided by the total change in price

Answer

Absolute change in price divided by the absolute change in quantity demanded

Question 51

The effect of a subsidy on the supply side of a market is to:

Accepted Answer

Increase quantity supplied

Answer

Decrease quantity supplied

Answer

Increase quantity demanded

Answer

Decrease quantity demanded

Question 52

Which of the following is not a characteristic of a price-discriminating monopolist?

Accepted Answer

Charges the same price to all consumers

Answer

Sells different units of a good at different prices

Answer

Maximizes total revenue

Answer

Faces a downward-sloping demand curve

Question 53

For a monopolist, profit-maximizing output occurs where:

Accepted Answer

Marginal revenue equals marginal cost

Answer

Average revenue equals average cost

Answer

Total revenue is maximized

Answer

Total cost is minimized

Question 54

What is the immediate impact on market equilibrium of a decrease in the number of suppliers?

Accepted Answer

Price increase, quantity decrease

Answer

Price decrease, quantity increase

Answer

Both price and quantity decrease

Answer

Both price and quantity increase

Question 55

Which of the following accurately describes an elastic demand curve?

Accepted Answer

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

Answer

A small change in income leads to a relatively large change in quantity demanded

Answer

The demand curve is almost vertical

Answer

The demand curve is almost horizontal

Question 56

What is the direct consequence of a price ceiling set below the equilibrium price?

Accepted Answer

Creates a shortage

Answer

Creates a surplus

Answer

Has no effect on the market

Answer

Increases both supply and demand

Question 57

What is the defining characteristic of the supply curve?

Accepted Answer

Positive slope

Answer

Negative slope

Answer

Zero slope

Answer

Indeterminate slope

Question 58

In a perfectly competitive market, how is a firm's marginal revenue related to its price?

Accepted Answer

Marginal revenue is equal to price

Answer

Marginal revenue is independent of price

Answer

Marginal revenue is less than price

Answer

Marginal revenue is greater than price

Question 59

Which of the following would cause the supply curve for a good to shift to the right?

Accepted Answer

Government subsidies

Answer

Increase in input costs

Answer

Decrease in technology

Answer

Natural disaster

Question 60

In a market where supply exceeds demand, which of the following is expected to happen?

Accepted Answer

Excess supply

Answer

Excess demand

Answer

Price floor

Answer

Equilibrium

Question 61

Which condition must be met for a market to be in equilibrium?

Accepted Answer

Quantity demanded equals quantity supplied

Answer

There is a shortage

Answer

Price is above the equilibrium price

Question 62

A firm's total revenue reaches its maximum when:

Accepted Answer

Marginal revenue equals marginal cost

Answer

Total revenue is maximized

Answer

Marginal revenue is greater than marginal cost

Answer

Marginal revenue is less than marginal cost

Question 63

Which of the following will make the demand for a product more elastic?

Accepted Answer

The availability of many close substitutes

Answer

The product being considered a necessity

Answer

Consumers having a strong brand loyalty

Answer

The product being used in the production of other goods

Question 64

Which of the following is NOT a determinant of demand in a market?

Accepted Answer

The weather conditions

Answer

Consumer preferences

Answer

The number of consumers

Answer

The price of the product