SUPPLY AND DEMAND EXAM QUESTIONS

PDF Download

SUPPLY AND DEMAND EXAM QUESTIONS

Qs and Ans Expert- Explanation

This Exam contains:

-Guarantee passing score -5 Questions and Answers -format set of multiple-choice -Expert- Explanation

Question 1: Which phrase defines a demand schedule?

• a chart showing the impact of demographic changes on demand
• a table showing the quantity demanded for a good at different prices
• a graph tracking the increase in demand at decreasing prices
• a report analyzing factors causing a change in demand for goods

Answer:

• a table showing the quantity demanded for a good at different prices

Question 2: This graph shows the demand and supply of a particular brand of shampoo in the market. Which point on the graph indicates a surplus production of shampoo?

Answer:

D (next to supply curve)

Question 3: Which phrase describes the income effect?

• the effect of demand and supply on income earned by producers
• the impact of price on consumers' purchasing ability and decisions

• the increased income earned by suppliers because of high prices
• the impact of consumers' income on the supply of a product

Answer:

• the impact of price on consumers' purchasing ability and decisions

Question 4: Which statements are true according to the law of supply?

A decrease in demand leads to an increase in supply.A decrease in demand leads to a decrease in supply.An increase in price leads to a decrease in supply.A decrease in price leads to a decrease in supply.An increase in price leads to an increase in supply.

Answer:

A decrease in price leads to a decrease in supply.An increase in price leads to an increase in supply.Question 5: The price of mangoes is currently $5.00 per pound. At this price, producers are supplying 4,000 pounds of mangoes. Point C on the graph shows the current equilibrium price and quantity. To which point will the equilibrium shift if the demand increases suddenly because of a non-price determinant of demand?

Answer:

B (nearest to supply curve)