Demand and Supply: Interactive Learning Quizzes for Economics Students

Question 1

The COVID-19 pandemic led to a surge in demand for hand sanitizer in 2020. How did this change in demand impact the market equilibrium for hand sanitizer?

Accepted Answer

Equilibrium quantity increased, equilibrium price increased.

Answer

Equilibrium quantity decreased, equilibrium price increased.

Answer

Equilibrium quantity decreased, equilibrium price decreased.

Answer

Equilibrium quantity increased, equilibrium price decreased.

Question 2

What is the expected impact of an increase in supply on the market equilibrium price and quantity?

Accepted Answer

Price decreases, quantity increases

Answer

Price increases, quantity decreases

Answer

Price remains constant, quantity increases

Answer

Price increases, quantity increases

Question 3

In a market with pure competition, what is the relationship between the number of sellers and buyers?

Accepted Answer

Many buyers and many sellers

Answer

Many buyers and few sellers

Answer

Few buyers and many sellers

Answer

Few buyers and few sellers

Question 4

How does a technological innovation generally affect the supply of a product?

Accepted Answer

Shifts the supply curve to the right, increasing supply

Answer

Shifts the supply curve to the left, reducing supply

Answer

Causes a decrease in the equilibrium price

Answer

Has no effect on the supply curve

Question 5

How do the law of supply and the law of demand interact in a market?

Accepted Answer

They influence each other, leading to market equilibrium

Answer

They are independent of each other

Answer

The law of supply is more important than the law of demand

Answer

The law of demand is only applicable in perfect markets

Question 6

Which combination of factors can result in a market surplus?

Accepted Answer

Decreased demand and increased supply

Answer

Increased demand and increased supply

Answer

Increased demand and decreased supply

Answer

Decreased demand and decreased supply

Question 7

What is the primary role of market equilibrium in an economy?

Accepted Answer

Allocates resources efficiently to satisfy consumer needs

Answer

Maximizes profits for businesses

Answer

Ensures that there are no shortages or surpluses

Answer

Prevents government intervention in markets

Question 8

If the price of a substitute good increases, what will happen to demand for the original good?

Accepted Answer

Decrease

Answer

Increase

Answer

Stay unchanged

Answer

Become elastic

Question 9

What happens at the equilibrium price?

Accepted Answer

Quantity demanded equals quantity supplied

Answer

Quantity demanded is greater than quantity supplied

Answer

Quantity supplied is greater than quantity demanded

Answer

Price is at its highest

Question 10

When demand increases and supply remains constant, what happens to market equilibrium?

Accepted Answer

Price rises, and quantity demanded increases

Answer

Price falls, and quantity demanded increases

Answer

Price stays the same, and quantity demanded increases

Answer

Price rises, and quantity demanded decreases

Question 11

Which of the following is NOT an example of a shift in supply?

Accepted Answer

A change in consumer preferences

Answer

A change in technology that reduces production costs

Answer

An increase in the number of suppliers

Answer

A natural disaster that affects production

Question 12

According to the law of supply, what happens when price increases?

Accepted Answer

Quantity supplied increases.

Answer

Quantity supplied decreases.

Answer

Quantity demanded increases.

Answer

Quantity demanded decreases.

Question 13

When supply decreases and demand remains constant, what happens to market equilibrium?

Accepted Answer

Price rises, and quantity supplied decreases

Answer

Price falls, and quantity supplied decreases

Answer

Price stays the same, and quantity supplied decreases

Answer

Price falls, and quantity supplied increases

Question 14

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

Accepted Answer

A government-imposed maximum price for a good

Answer

A government-imposed minimum price for a good

Answer

A tax on a good

Answer

A subsidy for a good

Question 15

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 slope of the demand curve

Answer

The slope of the supply curve

Question 16

How does the elasticity of supply affect the responsiveness of quantity supplied to changes in price?

Accepted Answer

Elastic supply leads to a larger change in quantity supplied for a given price change compared to inelastic supply.

Answer

Elastic supply leads to a smaller change in quantity supplied for a given price change compared to inelastic supply.

Answer

Elasticity of supply has no impact on the responsiveness of quantity supplied to price changes.

Question 17

How can a shift in consumer preferences impact the demand for a product? Analyze the potential effects of such a shift.

Accepted Answer

A shift in consumer preferences can alter the quantity demanded at a specific price.

Answer

A shift in consumer preferences has no effect on demand.

Answer

A shift towards a product can lower its demand.

Answer

A shift away from a product can raise its demand.

Question 18

A shift in the demand curve to the right indicates:

Accepted Answer

An increase in demand

Answer

A decrease in supply

Answer

A decrease in demand

Answer

An increase in supply

Question 19

What is the equilibrium price?

Accepted Answer

The price at which quantity supplied equals quantity demanded

Answer

The lowest price at which a seller is willing to sell

Answer

The highest price at which a consumer is willing to buy

Answer

The price determined by government intervention

Question 20

What is the elasticity of demand?

Accepted Answer

A measure of how responsive quantity demanded is to a change in price

Answer

A measure of how responsive quantity supplied is to a change in price

Answer

The slope of the demand curve

Question 21

What is the point of intersection between the supply and demand curves called?

Accepted Answer

Equilibrium point

Answer

Surplus point

Answer

Disequilibrium point

Answer

Shortage point

Question 22

Which of the following represents a price ceiling?

Accepted Answer

A government-imposed maximum price

Answer

A government-imposed minimum price

Answer

A price that is above the equilibrium price

Answer

A price determined by market forces