economics quiz on supply and demand

01

The market demand curve shows

A. the effect on market supply of a change in the demand for a good or service.

B.the quantity of a good that consumers would like to purchase at different prices.

02

Market equilibrium refers to a situation in which market price

A. is at a level where there is neither a shortage nor a surplus.

B.is low enough for consumers to buy all that they want.

03

An increase in the demand for a good will cause

A. an increase in equilibrium price and quantity.

B. decrease in equilibrium price and quantity.

04

The market supply curve shows

A. the effect on market demand of a change in the supply of a good or service.

B. the quantity of a good that firms would offer for sale at different prices.

05

An increase in the supply of a good will cause

A.  an increase in equilibrium price and a decrease in equilibrium quantity.

B. a decrease in equilibrium price and an increase in equilibrium quantity.

06

If a rise in supply exceeds a rise in demand, then we should expect

A.  The equilibrium price will fall while the equilibrium quantity will rise.

B. the equilibrium price will rise while the equilibrium quantity will decline.

 07

In which instance will both the equilibrium price and quantity rise?

A.  When demand and supply increase, but the rise in supply exceeds the rise in demand.

B.  When demand and supply increase, but the rise in demand exceeds the rise in supply.

 08

If automobile manufacturers are producing cars faster than people want to buy them,

A.  there is an excess supply and price can be expected to decrease.

B.  there is an excess supply and price can be expected to increase.

 09

A firm's supply curve is upsloping because:

A.  consumers envision a positive relationship between price and quality.

B. beyond some point the production costs of additional units of output will rise.

 10

If the price of K declines, the demand curve for the complementary product J will:

A.  shift to the right.

B. shift to the left.