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SUPPLY AND DEMAND EXAM QUESTIONS
Actual Qs and Ans Expert-Verified Explanation
This Exam contains:
-Guarantee passing score -5 Questions and Answers -format set of multiple-choice -Expert-Verified 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)
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