Demand and supply

What is the law of demand?

As price increases, quantity demanded decreases

As price increases, quantity demanded increases

As price decreases, quantity demanded decreases

As price decreases, quantity demanded increases

Which of the following factors can cause a shift in the demand curve?

Changes in consumer income

Changes in the price of related goods

Changes in production costs

Changes in government regulations

What is elasticity of demand?

A measure of how responsive quantity demanded is to changes in price

A measure of how responsive quantity supplied is to changes in price

A measure of how responsive consumer income is to changes in price

A measure of how responsive production costs are to changes in price

Which of the following is an example of a substitute good?

Coffee and tea

Apples and oranges

Butter and bread

Cars and bicycles

What is the law of supply?

As price increases, quantity supplied decreases

As price increases, quantity supplied increases

As price decreases, quantity supplied decreases

As price decreases, quantity supplied increases

Which of the following factors can cause a shift in the supply curve?

Changes in production costs

Changes in technology

Changes in consumer preferences

Changes in government regulations

What is price elasticity of supply?

A measure of how responsive quantity supplied is to changes in price

A measure of how responsive quantity demanded is to changes in price

A measure of how responsive consumer income is to changes in price

A measure of how responsive production costs are to changes in price

What is a price ceiling?

A maximum price set by the government above which a good cannot be sold

A minimum price set by the government below which a good cannot be sold

A price at which demand and supply are equal

A price determined by market forces without government intervention

Which of the following is an example of a complementary good?

Peanut butter and jelly

Milk and cheese

Shoes and hats

Pens and paper

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