Froggy Jumps Demand and Supply QuizOnline version Test your knowledge on demand and supply concepts in economics! by Anagrey 03 1 What does the law of demand state? a As price decreases, quantity demanded increases. b As price increases, quantity demanded decreases. c Price and quantity demanded are unrelated. 2 What is a demand curve? a A chart of consumer preferences. b A graph showing the relationship between price and quantity demanded. c A graph showing supply levels. 3 What factors can shift the demand curve? a Weather conditions and government policies. b Production costs and technology. c Consumer income, preferences, and prices of related goods. 4 What does the law of supply state? a Price and quantity supplied are unrelated. b As price decreases, quantity supplied decreases. c As price increases, quantity supplied increases. 5 What is a supply curve? a A chart of market equilibrium. b A graph showing the relationship between price and quantity supplied. c A graph of consumer demand. 6 What causes a shift in the supply curve? a Changes in consumer preferences. b Changes in production costs, technology, and number of sellers. c Fluctuations in demand. 7 What is market equilibrium? a The lowest price producers will accept. b The point where quantity demanded equals quantity supplied. c The highest price consumers are willing to pay. 8 What happens when demand exceeds supply? a Equilibrium is maintained. b A shortage occurs, leading to higher prices. c A surplus occurs, leading to lower prices. 9 What is elasticity of demand? a A measure of consumer income levels. b A measure of how quantity demanded responds to price changes. c A measure of production efficiency. 10 What is a complementary good? a A product that substitutes another. b A product that is often used together with another product. c A product with no demand.
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