Test Your Knowledge: Supply and Demand Put your understanding of the basic concepts of supply and demand to the test with this quiz! remus2009 published on January 230 responses 0 « Previous Next » Questions in vertical order 1/11 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? Price increases Price decreases Price remains constant 3/11 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? Quantity supplied increases Quantity supplied remains constant Quantity supplied decreases 5/11 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? Equilibrium quantity increases Equilibrium quantity is indeterminate Equilibrium quantity decreases 7/11 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? Price elasticity of demand Technology Number of suppliers 9/11 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? 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? Decrease in demand and decrease in supply Increase in demand and increase in supply Decrease in demand and increase in supply
