Correct Answer is: are complements to each other.

Demand and Supply MCQ Multiple Choice Questions Answers

Q: 1. A change in which of the following alters buying plans for cars but does NOT shift the demandcurve for cars?

Correct Answer is: an increased preference for walking rather than driving

Q: 2. A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

Correct Answer is: the nature of an inferior good.

Q: 3. Which of the following would NOT shift the demand curve for turkey?

Correct Answer is: an increase in income

Q: 4. Which of the following is consistent with the law of demand?

Correct Answer is: A decrease in the price of juice causes no change in the quantity of juice demanded.

Q: 5. The law of demand states that

Correct Answer is: an increase in the price of a good shifts the demand curve leftward.

Q: 6. Blank tapes and prerecorded tapes are substitutes in production. An increase in the price of a blank tape will cause

Correct Answer is: an increase in the supply of prerecorded tapes.

Q: 7. The law of demand implies that if nothing else changes, there is

Correct Answer is: an exponential relationship between price of a good and the quantity demanded.

Q: 8. Which of the following will shift the supply curve for good X leftward?

Correct Answer is: a technological improvement in the production of X

Q: 9. The quantity supplied of a good or service is the quantity that a producer

Correct Answer is: needs to sell at a particular price during a given time period.

Q: 10. Which of the following does NOT shift the supply curve?

Correct Answer is: a technological advance

Master the fundamentals of economics with our Demand and Supply MCQs. These multiple-choice questions are designed to help students and exam aspirants reinforce their understanding and prepare effectively for various assessments.

About Demand and Supply MCQ Questions

Demand and Supply MCQs cover essential economic concepts such as the laws of demand and supply, market equilibrium, price determination, and elasticity. These questions are crafted to test your knowledge and application skills in real-world scenarios.

Why Practice Demand and Supply Objective Questions?

Practicing these objective questions offers numerous benefits. They help you prepare for school and college exams, competitive exams, and job interviews. Regular practice enhances your understanding, improves your problem-solving skills, and boosts your confidence in economic principles.

Who Should Use These MCQs?

Demand and Supply MCQ Questions for Practice

1. A change in which of the following alters buying plans for cars but does NOT shift the demandcurve for cars?

a 10 percent decrease in the price of car insurance
a 20 percent increase in the price of a car
a 5 percent increase in peoples income
an increased preference for walking rather than driving

2. A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

a change in supply.
the law of demand.
the nature of an inferior good.
the law of supply.

3. Which of the following would NOT shift the demand curve for turkey?

a change in tastes for turkey
a decrease in the price of ham
an increase in income
a change in the price of a turkey

4. Which of the following is consistent with the law of demand?

A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded.
An increase in the price of a soda causes a decrease in the quantity of soda demanded.
An increase in the price of a tape causes an increase in the quantity of tapes demanded.
A decrease in the price of juice causes no change in the quantity of juice demanded.

5. The law of demand states that

a decrease in the price of a good shifts the demand curve leftward.
other things remaining the same, the higher the price of a good, the smaller is the quantity demanded.
other thing remaining the same, the higher the price of a good, the larger is the quantity demanded.
an increase in the price of a good shifts the demand curve leftward.

6. Blank tapes and prerecorded tapes are substitutes in production. An increase in the price of a blank tape will cause

a decrease in the supply of prerecorded tapes.
an increase in the quantity supplied of prerecorded tapes but not in the supply.
a decrease in the quantity supplied of prerecorded tapes but not in the supply.
an increase in the supply of prerecorded tapes.

7. The law of demand implies that if nothing else changes, there is

a linear relationship between price of a good and the quantity demanded.
a positive relationship between the price of a good and the quantity demanded.
a negative relationship between the price of a good and the quantity demanded.
an exponential relationship between price of a good and the quantity demanded.

8. Which of the following will shift the supply curve for good X leftward?

a situation in which quantity demanded exceeds quantity supplied
an increase in the cost of the machinery used to produce X
a decrease in the wages of workers employed to produce X
a technological improvement in the production of X

9. The quantity supplied of a good or service is the quantity that a producer

actually sells at a particular price during a given time period.
should sell at a particular price during a given time period.
is willing to sell at a particular price during a given time period.
needs to sell at a particular price during a given time period.

10. Which of the following does NOT shift the supply curve?

an increase in the price of the good
a fall in the price of a substitute in production
a decrease in the wages of labor used in production of the good
a technological advance

11. Which of the following causes an increase in the quantity supplied of good X but NOT in the supply of good X?

an increase in the price of X
an increase in the price of good Y, a complement in the production of X
an improvement in the technology for producing X
a reduction in the price of resources used to produce X

12. Because of increasing marginal cost, most supply curves

are horizontal.
have a negative slope.
are vertical.
have a positive slope.

13. The law of demand implies that, other things remaining the same,

as the demand for cheeseburgers increases, the price of a cheeseburger will fall.
as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease.
as income increases, the quantity of cheeseburgers demanded will increase.
as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase.

14. Which of the following pairs of goods are most likely substitutes?

compact discs and compact disc players
lettuce and salad dressing
cola and lemon lime soda
peanut butter and gasoline

15. The demand curve for a normal good shifts leftward if income or the expected future price

decreases; falls
increases; rises
increases; falls
decreases; rises

16. Good A and good B are substitutes in production. The demand for good A increases so that theprice of good A rises. The increase in the price of good A shifts the

demand curve for good B rightward.
demand curve for good B leftward.
supply curve of good B rightward.
supply curve of good B leftward.

17. Wants, as opposed to demands,

depend on the price.
are the goods the consumer plans to acquire.
are the unlimited desires of the consumer
are the goods the consumer has acquired.

18. A reduction in the price of a good

does not shift the goods demand curve leftward but does decrease the quantity demanded.
shifts the goods demand curve leftward but does not decrease the quantity demanded.
shifts the goods demand curve leftward and also decreases the quantity demanded.
neither shifts the goods demand curve leftward nor decreases the quantity demanded.

19. The quantity supplied of a good is

equal to the difference between the quantity available and the quantity desired by allconsumers and producers.
the same thing as the quantity demanded at each price.
the amount that the producers are planning to sell at a particular price during a given time period.
the amount the firm would sell if it faced no resource constraints.

20. The demand for a good increases when the price of a substitute and also increases whenthe price of a complement .

falls; falls
rises; falls
rises; rises
falls; rises

21. Most goods

have vertical demand curves.
have vertical supply curves.
are normal goods.
are complements to each other.

22. Inferior goods are those for which demand increases as

income decreases.
income increases.
the price of a substitute rises.
the price of a substitute falls.

23. Good A and good B are substitutes in production. The demand for good A decreases, which lowersthe price of good A. The decrease in the price of good A

increases the demand for good B.
decreases the demand for good B.
increases the supply of good B.
decreases the supply of good B.

24. An increase in the number of fast-food restaurants

increases the demand for substitutes for fast-food meals.
raises the price of fast-food meals.
increases the supply of fast-food meals.
increases the demand for fast-food meals.

25. A normal good is a good for which demand

increases when income increases.
decreases when population increases.
increases when population increases.
decreases when income increases.

26. An inferior good is a good for which demand

increases when population increases.
decreases when income increases.
decreases when population increases.
increases when income increases.

27. The law of demand states that the quantity of a good demanded varies

inversely with its price.
directly with population.
directly with income.
inversely with the price of substitute goods.

28. A supply curve differs from a supply schedule because a supply curve

is a graph and the supply schedule is a table.
holds the number of suppliers constant, whereas the supply schedule allows the number tovary.
holds resource prices constant, whereas the supply schedule allows them to vary.
represents one firm, whereas the supply schedule represents all firms in the market.

29. As the opportunity cost of a good decreases, people buy

more of that good but less of its complements.
less of that good and also less of its complements.
less of that good but more of its complements.
more of that good and also more of its complements.

30. When we say demand increases, we mean that there is a

movement to the right along a demand curve.
movement to the left along a demand curve.
leftward shift of the demand curve.
rightward shift of the demand curve.

Demand and Supply MCQ Multiple Choice Questions Answers | Quiz for Practice

About Demand and Supply MCQ Questions

Why Practice Demand and Supply Objective Questions?

Who Should Use These MCQs?

Demand and Supply MCQ Questions for Practice

1. A change in which of the following alters buying plans for cars but does NOT shift the demandcurve for cars?

2. A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

3. Which of the following would NOT shift the demand curve for turkey?

4. Which of the following is consistent with the law of demand?

5. The law of demand states that

6. Blank tapes and prerecorded tapes are substitutes in production. An increase in the price of a blank tape will cause

7. The law of demand implies that if nothing else changes, there is

8. Which of the following will shift the supply curve for good X leftward?

9. The quantity supplied of a good or service is the quantity that a producer

10. Which of the following does NOT shift the supply curve?

11. Which of the following causes an increase in the quantity supplied of good X but NOT in the supply of good X?

12. Because of increasing marginal cost, most supply curves

13. The law of demand implies that, other things remaining the same,

14. Which of the following pairs of goods are most likely substitutes?

15. The demand curve for a normal good shifts leftward if income or the expected future price

16. Good A and good B are substitutes in production. The demand for good A increases so that theprice of good A rises. The increase in the price of good A shifts the

17. Wants, as opposed to demands,

18. A reduction in the price of a good

19. The quantity supplied of a good is

20. The demand for a good increases when the price of a substitute and also increases whenthe price of a complement .

21. Most goods

22. Inferior goods are those for which demand increases as

23. Good A and good B are substitutes in production. The demand for good A decreases, which lowersthe price of good A. The decrease in the price of good A

24. An increase in the number of fast-food restaurants

25. A normal good is a good for which demand

26. An inferior good is a good for which demand

27. The law of demand states that the quantity of a good demanded varies

28. A supply curve differs from a supply schedule because a supply curve

29. As the opportunity cost of a good decreases, people buy

30. When we say demand increases, we mean that there is a

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Demand and Supply MCQ Multiple Choice Questions Answers | Quiz for Practice

About Demand and Supply MCQ Questions

Why Practice Demand and Supply Objective Questions?

Who Should Use These MCQs?

Demand and Supply MCQ Questions for Practice

1. A change in which of the following alters buying plans for cars but does NOT shift the demandcurve for cars?

2. A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

3. Which of the following would NOT shift the demand curve for turkey?

4. Which of the following is consistent with the law of demand?

5. The law of demand states that

6. Blank tapes and prerecorded tapes are substitutes in production. An increase in the price of a blank tape will cause

7. The law of demand implies that if nothing else changes, there is

8. Which of the following will shift the supply curve for good X leftward?

9. The quantity supplied of a good or service is the quantity that a producer

10. Which of the following does NOT shift the supply curve?

11. Which of the following causes an increase in the quantity supplied of good X but NOT in the supply of good X?

12. Because of increasing marginal cost, most supply curves

13. The law of demand implies that, other things remaining the same,

14. Which of the following pairs of goods are most likely substitutes?

15. The demand curve for a normal good shifts leftward if income ________ or the expected future price ________

16. Good A and good B are substitutes in production. The demand for good A increases so that theprice of good A rises. The increase in the price of good A shifts the

17. Wants, as opposed to demands,

18. A reduction in the price of a good

19. The quantity supplied of a good is

20. The demand for a good increases when the price of a substitute ________ and also increases whenthe price of a complement ________.

21. Most goods

22. Inferior goods are those for which demand increases as

23. Good A and good B are substitutes in production. The demand for good A decreases, which lowersthe price of good A. The decrease in the price of good A

24. An increase in the number of fast-food restaurants

25. A normal good is a good for which demand

26. An inferior good is a good for which demand

27. The law of demand states that the quantity of a good demanded varies

28. A supply curve differs from a supply schedule because a supply curve

29. As the opportunity cost of a good decreases, people buy

30. When we say demand increases, we mean that there is a

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15. The demand curve for a normal good shifts leftward if income or the expected future price

20. The demand for a good increases when the price of a substitute and also increases whenthe price of a complement .