Multiple Choice Questions on Demand and Supply
CHAPTER 3—DEMAND AND SUPPLY
MULTIPLE CHOICE
1. If demand increases while supply decreases for a particular good:
a. its equilibrium price will increase while the quantity of the good produced and sold could increase, decrease, or remain constant.
b. the quantity of the good produced and sold will decrease while its equilibrium price could increase, decrease, or remain constant.
c. the quantity of the good produced and sold will increase while its equilibrium price could increase, decrease or remain constant.
d. its equilibrium price will decrease while the quantity of the good produced and sold could increase, decrease, or remain constant.
2. Surplus is a condition of:
a. excess supply.
b. a deficiency in supply.
c. market equilibrium.
d. excess demand.
3. The quantity of product X supplied can be expected to rise with a fall in:
a. prices of competing products.
b. price of X.
c. energy-saving technical change.
d. input prices.
4. Derived demand is directly determined by:
a. utility.
b. the profitability of using inputs to produce output.
c. the ability to satisfy consumer desires.
d. personal consumption.
5. A demand curve expresses the relation between the quantity demanded and:
a. income.
b. advertising.
c. price.
d. all of the above.
6. Change in the quantity supplied reflects a:
a. change in price.
b. switch from one supply curve to another.
c. change in one or more nonprice variables.
d. shift in supply.
Presented by Suong Jian & Liu Yan, MGMT Panel , Guangdong University of Finance.
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7. Holding all else equal, an unnecessary increase in federally-mandated auto safety requirements leads to a decrease in:
a. auto demand.
b. the quantity of autos supplied.
c. auto supply.
d. the quantity of autos demanded.
8. Holding all else equal, an increase in mandatory payments by employers for universal health care coverage for workers would lead to a decrease in the:
a. supply of workers.
b. the quantity supplied of workers.
c. the quantity demanded of
MULTIPLE CHOICE
1. If demand increases while supply decreases for a particular good:
a. its equilibrium price will increase while the quantity of the good produced and sold could increase, decrease, or remain constant.
b. the quantity of the good produced and sold will decrease while its equilibrium price could increase, decrease, or remain constant.
c. the quantity of the good produced and sold will increase while its equilibrium price could increase, decrease or remain constant.
d. its equilibrium price will decrease while the quantity of the good produced and sold could increase, decrease, or remain constant.
2. Surplus is a condition of:
a. excess supply.
b. a deficiency in supply.
c. market equilibrium.
d. excess demand.
3. The quantity of product X supplied can be expected to rise with a fall in:
a. prices of competing products.
b. price of X.
c. energy-saving technical change.
d. input prices.
4. Derived demand is directly determined by:
a. utility.
b. the profitability of using inputs to produce output.
c. the ability to satisfy consumer desires.
d. personal consumption.
5. A demand curve expresses the relation between the quantity demanded and:
a. income.
b. advertising.
c. price.
d. all of the above.
6. Change in the quantity supplied reflects a:
a. change in price.
b. switch from one supply curve to another.
c. change in one or more nonprice variables.
d. shift in supply.
Presented by Suong Jian & Liu Yan, MGMT Panel , Guangdong University of Finance.
--1--
7. Holding all else equal, an unnecessary increase in federally-mandated auto safety requirements leads to a decrease in:
a. auto demand.
b. the quantity of autos supplied.
c. auto supply.
d. the quantity of autos demanded.
8. Holding all else equal, an increase in mandatory payments by employers for universal health care coverage for workers would lead to a decrease in the:
a. supply of workers.
b. the quantity supplied of workers.
c. the quantity demanded of