Economics - Supply & Demand
(183).webp "Economics - Supply & Demand - Quiz")
Questions and Answers
- 1.
Categorize the following questions on this quiz as affecting mostly Supply, Demand , or Both. Equilibrium Point..
- A.
Demand
- B.
Supply
- C.
Both
Correct Answer
C. BothExplanation
The equilibrium point is the point at which the quantity demanded equals the quantity supplied in a market. This means that both supply and demand are equally influential in determining the equilibrium point. Changes in either supply or demand will shift the equilibrium point, indicating that both factors affect the market. Therefore, the correct answer is "Both."Rate this question:
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- 2.
How much of a good or service there is.
- A.
Demand
- B.
Supply
- C.
Both
Correct Answer
B. SupplyExplanation
The given question is asking about the concept that refers to the quantity of a good or service available in the market. This concept is known as "supply." Supply represents the amount of a product that producers are willing and able to sell at a given price and time. It is determined by factors such as production costs, technology, and resource availability. Demand, on the other hand, refers to the quantity of a good or service that consumers are willing and able to purchase at a given price and time. Therefore, the correct answer is "Supply."Rate this question:
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- 3.
How much consumers want a good or a service.
- A.
Demand
- B.
Supply
- C.
Both
Correct Answer
A. DemandExplanation
The given question is asking about the level of desire or need that consumers have for a good or service. This concept is known as demand. Demand represents the quantity of a product or service that consumers are willing and able to buy at a given price and time. It is determined by factors such as price, income, preferences, and availability of substitutes. Therefore, the correct answer is "Demand."Rate this question:
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- 4.
Decreases when a product becomes more expensive.
- A.
Demand
- B.
Supply
- C.
Both
Correct Answer
A. DemandExplanation
When a product becomes more expensive, the demand for it typically decreases. This is because consumers are less willing or able to purchase the product at a higher price. As the price increases, it may exceed the consumer's willingness to pay or their budget constraints, leading to a decrease in demand. Therefore, the correct answer is "Demand."Rate this question:
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- 5.
Increases when a producer thinks a lot of something will sell at a high price.
- A.
Demand
- B.
Supply
- C.
Both
Correct Answer
B. SupplyExplanation
When a producer believes that a large quantity of a product will sell at a high price, they will increase the supply of that product. This is because they anticipate higher profits due to the expected high demand and price. By increasing the supply, the producer aims to meet the potential demand and capitalize on the opportunity to sell more units at a higher price. Therefore, the statement "Increases when a producer thinks a lot of something will sell at a high price" aligns with the concept of supply.Rate this question:
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Current Version
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Feb 14, 2024Quiz Edited by
ProProfs Editorial Team -
Sep 28, 2011Quiz Created by
Bcjoe77
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