This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand And Supply Analysis > Demand And Supply Analysis – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand And Supply Analysis Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Market demand is obtained by? A) Vertical summation of individual demand. B) Horizontal summation of individual demand. C) Multiplying individual demand. D) Dividing individual demand. Show Answer Correct Answer: B) Horizontal summation of individual demand. 2. If workers demand and receive higher real wages (a successful wage push), the cost of production ..... and the short-run aggregate supply curve shifts ..... A) Rises; leftward. B) Rises; rightward. C) Falls; leftward. D) Falls; rightward. Show Answer Correct Answer: A) Rises; leftward. 3. The willingness and ability to buy something in a given time period. A) Supply. B) Demand. C) Law of supply. D) Law of demand. Show Answer Correct Answer: B) Demand. 4. Scarcity is a measure of supply A) True. B) False. Show Answer Correct Answer: A) True. 5. Point where the quantity supplied is equal to the quantity demanded. A) Equilibrium price. B) Shortage. C) Surplus. D) Disequilibrium. Show Answer Correct Answer: A) Equilibrium price. 6. Raw Material is considered as a supply product. A) True. B) False. Show Answer Correct Answer: A) True. 7. A change in the number of producers. A) Shift in Supply. B) Shift in Demand. Show Answer Correct Answer: A) Shift in Supply. 8. What is Sale? A) Sale is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time. B) Sale is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace. C) Sale is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace. D) Sale is an activity related to selling or the number of goods or services sold in a given time period. Show Answer Correct Answer: D) Sale is an activity related to selling or the number of goods or services sold in a given time period. 9. Write the meaning of Price high X Demand low. A) Means when price is high demand is low. B) Means when price is low demand is low and also Demand is high. Show Answer Correct Answer: A) Means when price is high demand is low. 10. The amount of a good producers are willing and able to sell at a specific price. A) Quantity supplied. B) Demand. C) Supply. D) Quantity demand. Show Answer Correct Answer: A) Quantity supplied. 11. Positive spending shocks lead to ..... output ..... A) Higher; in both the short and long runs. B) Higher; in the short run but not in the long run. C) Lower; in both the short and long runs. D) Lower; in the short run but not in the long run. Show Answer Correct Answer: B) Higher; in the short run but not in the long run. 12. AD curve is a: A) Horizontal straight line parallel to the X-axis. B) Positively sloped curve. C) Negatively sloped curve. D) Vertically straight kine parallel to the y-axis. Show Answer Correct Answer: B) Positively sloped curve. 13. People produce goods and services to earn ..... A) Clothes. B) Food. C) Money. D) None of these. Show Answer Correct Answer: C) Money. 14. Inflation affects the price of raw materials. A) True. B) False. Show Answer Correct Answer: A) True. 15. Expansion or a Contraction in demand remains along the ..... demand curve A) Different. B) Same. C) Two. D) None of the above. Show Answer Correct Answer: B) Same. 16. A change in consumer income. A) Shift in Supply. B) Shift in Demand. Show Answer Correct Answer: B) Shift in Demand. 17. Price elasticity of demand for a good will most likely be greater if: A) There are no substitutes for the good. B) Consumers consider the good as discretionary. C) Consumers spend a small portion of their budget on the good. D) None of above. Show Answer Correct Answer: B) Consumers consider the good as discretionary. 18. Aggregate supply and ..... are always equal. A) National income. B) Aggregate demand. C) Marginal propensity to save. D) Average propensity to consume. Show Answer Correct Answer: A) National income. 19. Porterville, California is now a major immigration center for Russians. Over 10, 000 Russians are living in Porterville now! What demand does this determine? A) Change in Consumer Income. B) Change in Consumer Tastes. C) Change in Consumer Price Expectations. D) Change in Number of Consumers in the Market. Show Answer Correct Answer: D) Change in Number of Consumers in the Market. 20. The marginal revenue per unit sold for a firm doing business under conditionsof perfect competition will most likely be: A) Equal to average revenue. B) Less than average revenue. C) Greater than average revenue. D) None of above. Show Answer Correct Answer: A) Equal to average revenue. Next →Related QuizzesMicroeconomics QuizzesEconomics QuizzesDemand And Supply Analysis Quiz 2Demand And Supply Analysis Quiz 3Demand And Supply Analysis Quiz 4Demand And Supply Analysis Quiz 5Demand And Supply Analysis Quiz 6Demand And Supply Analysis Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books