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Market Fundamentals Quiz

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Market Fundamentals Quiz

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Test your understanding of demand, supply, and equilibrium.

Created by

Montex
Montex
Canada

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Market Fundamentals Quiz
 

Market Fundamentals QuizOnline version

Test your understanding of demand, supply, and equilibrium.

by Montex
1

What does demand describe in economics? The relationship between prices and the quantities demanded at those prices.

2

What is the Law of Demand? Higher price leads to lower quantity demanded (ceteris paribus).

3

Which factor shifts the demand curve to the right? Higher income (other things equal).

4

What happens to equilibrium price when demand increases (ceteris paribus)? It rises.

5

What does excess supply mean? Price above equilibrium, quantity supplied exceeds demanded.

6

What is market equilibrium? Quantity demanded equals quantity supplied at a price.

7

Which determinant shifts the supply curve to the right? Technological improvement.

8

What is a substitute in demand analysis? A good that can replace another.

9

What is the effect of a subsidy on supply? Supply increases (curve shifts right).

10

What does ‘ceteris paribus’ mean in these graphs? All else equal.

 
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