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1 Demand, Supply, and Market Equilibrium Online Quiz Questions

Use this free practice quiz with 20 questions to review 1 Demand, Supply, and Market Equilibrium, test your knowledge, and prepare for your next test or exam.

20 questions
01
True or false
1 point

Holding other influences constant, a rise in a good’s own price leads to a lower quantity demanded.

  1. A

    True

  2. B

    False

02
Choose one
1 point

Which description identifies market equilibrium?

  1. A

    The price at which consumers want to buy the greatest possible amount.

  2. B

    The point where the quantity consumers plan to buy equals the quantity producers plan to sell.

  3. C

    The price at which producers offer more than consumers plan to buy.

  4. D

    Any price at which buyers and sellers are active.

03
Written response
1 point

At a price of $4, buyers want 60 items and sellers offer 40 items. How many items is the shortage?

04
Choose one
1 point

The price of apples falls, with all other influences unchanged. What happens in the apple market?

  1. A

    The demand curve shifts right because consumers want more at every price.

  2. B

    The demand curve shifts left because consumers want less at every price.

  3. C

    Consumers move along the same demand curve to a point with greater quantity demanded.

  4. D

    The supply curve shifts right.

05
True or false
1 point

If a popular new use for coffee increases demand while supply is unchanged, the new equilibrium price and equilibrium quantity both rise.

  1. A

    True

  2. B

    False

06
Choose all
1 point

Select all factors that can shift demand for a product by changing how much consumers want to buy at each possible price.

  1. A

    A change in consumers’ tastes

  2. B

    A change in consumers’ income

  3. C

    A change in the price of a related good

  4. D

    A change in the product’s own price

  5. E

    A change in consumers’ expectations

07
Choose one
1 point

If supply increases while demand remains unchanged, what happens to equilibrium price and equilibrium quantity?

  1. A

    Equilibrium price falls and equilibrium quantity rises.

  2. B

    Equilibrium price rises and equilibrium quantity falls.

  3. C

    Both equilibrium price and quantity fall.

  4. D

    Both equilibrium price and quantity rise.

08
Written response
1 point

At a particular price, sellers offer more of a good than buyers plan to purchase. What is this market condition called?

09
Choose all
1 point

Select all factors that can shift supply by changing how much producers are willing or able to sell at each possible price.

  1. A

    A change in the cost of production inputs

  2. B

    A change in production technology

  3. C

    A change in the good’s own price

  4. D

    A change in the number of sellers

  5. E

    A change in taxes or subsidies

10
Open ended
1 point

Demand and supply both increase in a market. Explain what can be concluded about the new equilibrium quantity and whether the new equilibrium price rises, falls, or is uncertain. Assume no other changes.

11
Choose one
1 point

At the current price, a market has a surplus. What pressure does this create on the market price as the market moves toward equilibrium?

  1. A

    The price faces upward pressure because buyers want more than sellers offer.

  2. B

    The price faces downward pressure because sellers offer more than buyers want.

  3. C

    The price faces no adjustment pressure because the market is already in equilibrium.

  4. D

    The demand curve shifts right automatically.

12
True or false
1 point

Holding other influences constant, a higher price leads producers to offer a higher quantity supplied.

  1. A

    True

  2. B

    False

13
Choose one
1 point

If the price of a good falls while all other influences remain unchanged, what happens in the market for that good?

  1. A

    Demand shifts right.

  2. B

    Quantity demanded increases along the existing demand curve.

  3. C

    Demand shifts left.

  4. D

    Supply shifts right.

14
Choose one
1 point

A rise in the cost of inputs makes producers willing or able to sell less of a product at every possible price. Which change occurs?

  1. A

    Supply shifts right because producers offer more at every price.

  2. B

    Quantity supplied falls along the existing supply curve, with no curve shift.

  3. C

    Supply shifts left because producers offer less at every price.

  4. D

    Demand shifts left because buyers purchase less at every price.

15
Choose one
1 point

More consumers enter a market, and buyers now want more of the good at every possible price. How does the demand curve change?

  1. A

    Quantity demanded rises along the existing demand curve.

  2. B

    Demand shifts left.

  3. C

    Supply shifts right.

  4. D

    Demand shifts right.

16
Choose one
1 point

Demand for a product increases while its supply curve remains unchanged. What happens to the new equilibrium price and quantity?

  1. A

    Equilibrium price rises and equilibrium quantity rises.

  2. B

    Equilibrium price falls and equilibrium quantity rises.

  3. C

    Equilibrium price rises and equilibrium quantity falls.

  4. D

    Equilibrium price and equilibrium quantity both fall.

17
Written response
1 point

At a price of $4, buyers want 60 items and sellers offer 40 items. How large is the shortage? Enter the number of items; the answer must be exact.

18
Written response
1 point

What is the market term for the price at which the quantity consumers plan to buy equals the quantity producers plan to sell?

19
Fill in the blank
1 point

In a market with an unchanged supply curve, consumers become less willing to buy the good at every price. As a result, both equilibrium price and equilibrium quantity .

20
Fill in the blank
1 point

A disruption makes producers willing or able to sell less of a good at every price, while demand remains unchanged. The new equilibrium price will .