Test Your Knowledge: Supply and Demand

Test Your Knowledge: Supply and Demand

Put your understanding of the basic concepts of supply and demand to the test with this quiz!

published on January 23
1/11

What happens to price when demand increases but supply remains constant?

What happens to price when demand increases but supply remains constant?
Price decreases
Price remains constant
Price increases
2/11

What happens to price when supply decreases but demand remains constant?

What happens to price when supply decreases but demand remains constant?
Price increases
Price decreases
Price remains constant
3/11

What happens to quantity demanded when price increases?

What happens to quantity demanded when price increases?
Quantity demanded increases
Quantity demanded decreases
Quantity demanded remains constant
4/11

What happens to quantity supplied when price decreases?

What happens to quantity supplied when price decreases?
Quantity supplied increases
Quantity supplied remains constant
Quantity supplied decreases
5/11

What happens to equilibrium price when demand increases and supply decreases?

What happens to equilibrium price when demand increases and supply decreases?
Equilibrium price increases
Equilibrium price is indeterminate
Equilibrium price decreases
6/11

What happens to equilibrium quantity when demand decreases and supply increases?

What happens to equilibrium quantity when demand decreases and supply increases?
Equilibrium quantity increases
Equilibrium quantity is indeterminate
Equilibrium quantity decreases
7/11

Which of the following is NOT a determinant of demand?

Which of the following is NOT a determinant of demand?
Income
Production cost
Taste and preferences
8/11

Which of the following is NOT a determinant of supply?

Which of the following is NOT a determinant of supply?
Price elasticity of demand
Technology
Number of suppliers
9/11

What does a downward sloping demand curve indicate?

What does a downward sloping demand curve indicate?
An elastic demand
A constant demand
An inverse relationship between price and quantity demanded
10/11

What does an upward sloping supply curve indicate?

What does an upward sloping supply curve indicate?
A constant supply
An inverse relationship between price and quantity supplied
A positive relationship between price and quantity supplied
11/11

Which of the following scenarios leads to an increase in both price and quantity exchanged?

Which of the following scenarios leads to an increase in both price and quantity exchanged?
Decrease in demand and decrease in supply
Increase in demand and increase in supply
Decrease in demand and increase in supply