Demand, Supply, and Market Equilibrium MCQs
Demand, Supply, and Market Equilibrium MCQs
Try to answer these 30 Demand, Supply, and Market Equilibrium MCQs and check your understanding of the Demand, Supply, and Market Equilibrium subject.
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1: A change in a good’s own price leads to a change in quantity demanded
A. True
B. False
2: _______ is where the many buyers and sellers have little market power
A. Product Markets
B. Competitive market
C. Free market
D. Imperfect market
3: Goods for which an increase in the price of one good leads to a decrease in the demand for the other good
A. Complements
B. Substitutes
C. Shortage
D. Elastic
4: Equilibrium Price is The price at the _____of the market supply and demand curves
A. Union
B. Conjunction
C. Intersection
D. Conjunction
5: Equilibrium quantity is The quantity at the _____of the market supply and demand curves
A. Union
B. Conjunction
C. Intersection
D. Conjunction
6: A graphical representation that shows the inverse relationship between price and quantity demanded is called
A. Individual supply curve
B. Individual Demand curve
C. Market supply curve
D. Market demand curve
7: A schedule that shows the relationship between price and quantity demanded is called
A. Individual supply schedule
B. Individual Demand schedule
C. Market supply schedule
D. Market demand schedule
8: A graphical representation that shows the positive relationship between price and quantity supplied is called
A. Individual supply curve
B. Individual Demand curve
C. Market supply curve
D. Market demand curve
9: In case of _____ goods If income increases, the demand for a good decreases
A. Normal goods
B. Superior goods
C. Inferior goods
D. Giffen goods
10: The law stating that the quantity of a good or service demanded varies inversely with its price is called
A. Law of supply
B. Law of Demand
C. Law of Goods
D. Law of Economics
11: The law stating that the higher the price of the good, the greater the quantity supplied is known as
A. Law of supply
B. Law of Demand
C. Law of Goods
D. Law of Economics
12: _____ is The process of buyers and sellers exchanging goods and services
A. Sale
B. Market
C. Industry
D. None of these
13: Market demand curve is The ______ summation of individual demand curves
A. Horizontal
B. Vertical
C. Both of these
D. None of these
14: The point at which the market supply and market demand curves intersect is called
A. Market equilibrium
B. Supply equilibrium
C. Demand equilibrium
D. Intersect equilibrium
15: Market supply curve is The ______ summation of the supply curves of producers
A. Horizontal
B. Vertical
C. Both of these
D. None of these
16: In Case of Normal Goods IF Income Increases the _______ for a Good Increases
A. Production
B. Suppy
C. Demand
D. Price
17: Shifts in the demand curve A change in one of the variables, other than the ____ of the good itself.
A. Quantity
B. Quality
C. Price
D. Packing
18: Shortage us A situation where quantity demanded exceeds quantity____
A. Produced
B. Consumed
C. Supplied
D. Stored
19: Goods for which an increase in the price of one good causes an increase in the demand for the other good is called
A. Surplus
B. Substitutes
C. Shortage
D. Elastic
20: Surplus is a situation where quantity ______ exceeds quantity _____
A. Supplied,demanded
B. Supplied,Produced
C. Demanded,supplied
D. Demanded,Produced
21: Which of the following is an accurate statement about the market?
A. It involves few buyers, but many sellers.
B. It involves many buyers and sellers.
C. It involves many buyers, but few sellers.
D. It involves just buyers.
22: What causes a stock to rise?
A. When people expect a company to do poorly in the future
B. When people expect a company to do well in the future
C. When people realize a company is doing poorly now
D. When people realize a company is holding steady now
23: “The law of demand is the law stating that the quantity of a good or service demanded varies inversely (negatively) with its price.” What is wrong with this definition?
A. It should say “positively” instead of “negatively.”
B. It should say “demanded and supplied.”
C. It should include ceteris paribus at the end.
D. It should include a reference to a demand curve.
24: A market demand curve would show the quantities of coffee demanded by ______.
A. One individual
B. One firm
C. A sampling of buyers
D. All buyers in a market
25: Other things held equal, ______ usually leads to a leftward shift of the demand curve.
A. Declining income
B. Tastes shifting toward the product
C. Declining price of a complement
D. Increasing price of a substitute
26: Which of the following will cause a rightward shift of the demand curve for the listed product?
A. Increased demand for apple juice
B. Increased price of tortilla chips
C. Steady price of baseballs
D. Decreased demand for wine coolers
27: In the acronym PYNTE, the letter “P” stands for which of the following?
A. Changes in income
B. Changes in price of related goods and services
C. Changes in number of products
D. Changes in purchasing
28: How does income relate to inferior goods?
A. An increase in income can often increase the shortage of inferior goods.
B. A decline in income can often increase the surplus of inferior goods.
C. An increase in income can often increase demand for inferior goods
D. A decline in income can often increase demand for inferior goods.
29: Which of the following would show the amount of canned tuna that all canneries in Asia are willing to produce at various prices?
A. Individual demand curve
B. Market demand curve
C. Individual supply curve
D. Market supply curve
30: ______ prices for a good or service provide incentives for producers to make or sell more of it.
A. Static
B. Fluctuating
C. Higher
D. Lower
31: A shift of an entire supply curve either right or left is called a(n) ______.
A. Change in supply
B. Change in quantity supplied
C. Decrease in supply
D. Increase in quantity supplied
32: The price of inputs increases significantly. Which of the following SPENT factors does this relate to?
A. S
B. P
C. E
D. T
33: Which of the following pairs are substitutes?
A. Coffee and cream
B. Coffee and tea
C. Tea and teapots
D. Butter and motor oil
34: Which of the following is an accurate statement about equilibrium quantity?
A. The quantity demanded is less than the quantity supplied.
B. The quantity demanded is almost equal to the quantity supplied.
C. The quantity demanded is exactly equal to the quantity supplied.
D. The quantity demanded is more than the quantity supplied.
35: Which of the following is an accurate statement?
A. Surpluses cause producers to maintain prices.
B. Shortages cause producers to maintain prices.
C. Shortages cause producers to cut prices.
D. Surpluses cause producers to cut prices.
36: Firms ________ in output markets and ________ in input markets.
A. Demand; demand
B. Supply; supply
C. Supply; demand
D. Demand; supply
37: A change in _____ does not shift the demand curve.
A. Taste
B. Opportunity costs
C. Population
D. Income
38: Elasticity is the percentage change in quantity divided by the percentage change in _______.
A. Price
B. It will be elastic
C. Inelastic
D. All of this
39: The demand for plums is unit elastic if _____.
A. A any increase in the price of plums results in a 1 percent decrease in the quantity of plums demanded
B. The price of plums does not change after a drought
C. A 5 percent rise in the price of plums results in a 5 percent decrease in the quantity of plums demanded
D. My demand for plums increases when the price of apples falls
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Demand, Supply, and Market Equilibrium MCQs
