Demand and Supply Quiz | Demand and Supply Online Test for Practice

31. A decrease in quantity demanded caused by an increase in price is represented by a

1. leftward shift of the demand curve.
2. rightward shift of the demand curve.
3. movement up and to the left along the demand curve.
4. movement down and to the right along the demand curve.

32. People come to expect that the price of a gallon of gasoline will rise next week. As a result,

1. todays supply of gasoline increases.
2. todays demand for gasoline increases.
3. next weeks supply of gasoline decreases.
4. the price of a gallon of gasoline falls today.

33. A drop in the price of a compact disc shifts the demand curve for prerecorded tapes leftward. From that you know compact discs and prerecorded tapes are

1. inferior goods.
2. complements.
3. normal goods.
4. substitutes.

34. People buy more of good 1 when the price of good 2 rises. These goods are

1. substitutes.
2. inferior goods.
3. normal goods.
4. complements.

35. By definition, an inferior good is a

1. want that is not expressed by demand.
2. good for which demand decreases when income increases.
3. normal substitute good.
4. good for which demand decreases when its price rises.

36. A substitute is a good

1. that can be used in place of another good.
2. of lower quality than another good.
3. of higher quality than another good.
4. that is not used in place of another good.

37. Which of the following influences peoples buying plans and varies moving along a demand curve?

1. income
2. the prices of related goods
3. preferences
4. the price of the good

38. Which of the following is NOT held constant while moving along a supply curve?

1. the number of sellers
2. the price of the good itself
3. prices of resources used in production
4. expected future prices

39. The opportunity cost of good A in terms of good B is equal to the

1. price of good A minus the price of good B.
2. price of good B minus the price of good A.
3. ratio of the price of good B to the price of good A.
4. ratio of the price of good A to the price of good B.

40. A decrease in the quantity supplied is represented by a

1. leftward shift in the supply curve.
2. movement up the supply curve.
3. rightward shift in the supply curve.
4. movement down the supply curve.

41. If the price of a good changes but everything else influencing suppliers planned sales remainsconstant, there is a

1. new supply curve that is to the left of the initial supply curve.
2. movement along the supply curve.
3. rotation of the initial supply curve around the initial price.
4. new supply curve that is to the right of the initial supply curve.

42. The law of demand implies that demand curves

1. slope down.
2. slope up.
3. shift leftward whenever the price rises.
4. shift rightward whenever the price rises.

43. A change in the price of a good

1. shifts the goods demand curve and also causes a movement along it.
2. neither shifts the goods demand curve nor causes a movement along it.
3. shifts the goods demand curve but does not cause a movement along it.
4. does not shift the goods demand curve but does cause a movement along it.

44. The law of demand states that, other things remaining the same, the higher the price of a good, the

1. larger is the quantity of the good demanded.
2. larger is the demand for the good.
3. smaller is the demand for the good.
4. smaller is the quantity of the good demanded.

45. If a producer can use resources to produce either good A or good B, then A and B are

1. complements in production.
2. substitutes in production.
3. substitutes in consumption.
4. complements in consumption.