Supply and Demand Quiz Test your knowledge about the fundamental concepts of supply and demand in economics. rihanna80 published on November 05, 20230 responses 0 « Previous Next » Questions in vertical order 1/10 What does the Law of Demand state? As supply increases, demand increases. As supply decreases, demand decreases. As price decreases, quantity demanded increases, and vice versa. There is no relationship between price and quantity demanded. 2/10 What does the Law of Supply state? As price increases, quantity supplied increases, and vice versa. As price decreases, quantity supplied decreases. There is no relationship between price and quantity supplied. As demand increases, supply decreases. 3/10 What is the equilibrium price in a market? The price at which quantity demanded equals quantity supplied. The highest price in the market. The lowest price in the market. The price at which demand is the highest. 4/10 What happens to the equilibrium price if demand increases? The equilibrium price increases. The equilibrium price decreases. The equilibrium price remains unchanged. The equilibrium price is unpredictable. 5/10 What happens to the equilibrium quantity if supply decreases? The equilibrium quantity increases. The equilibrium quantity decreases. The equilibrium quantity remains unchanged. The equilibrium quantity is unpredictable. 6/10 What is elastic demand? Demand that is not affected by price changes. Demand that is highly responsive to price changes. Demand that is relatively responsive to price changes. Demand that is perfectly responsive to price changes. 7/10 What is inelastic demand? Demand that is not very responsive to price changes. Demand that is highly responsive to price changes. Demand that is perfectly responsive to price changes. Demand that is not affected by price changes. 8/10 What is a substitute good? A good that can be used in place of another. A good that cannot be used in place of another. A good that has no effect on demand. A good that has no effect on supply. 9/10 What is a complementary good? A good that is consumed together with another good. A good that cannot be consumed together with another. A good that has no effect on demand. A good that has no effect on supply. 10/10 What is a surplus? A situation where quantity demanded exceeds quantity supplied. A situation where price is higher than the equilibrium price. A situation where quantity supplied exceeds quantity demanded. A situation where price is lower than the equilibrium price.
