Decrease in Demand and Market Surplus Quiz

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What will happen to the supply curve when producers face an additional cost?

It will become steeper

It will stay the same

It will shift to the left (correct)

It will shift to the right

How do subsidies impact production cost and supply?

Increase production cost and shift supply curve to the left

Decrease production cost and shift supply curve to the right (correct)

Decrease production cost and shift supply curve to the left

Increase production cost and shift supply curve to the right

What happens to market supply when there is a decrease in the number of sellers?

It decreases and shifts right

It increases and shifts left

It increases and shifts right

It decreases and shifts left (correct)

How do suppliers react when they expect future prices to rise?

They supply more Signup and view all the answers

What effect do natural disasters have on the supply curve?

Shift it to the left Signup and view all the answers

What is market equilibrium defined as?

A state where demand equals supply Signup and view all the answers

What is likely to happen if there is a surplus in the market?

Equilibrium price will decrease Signup and view all the answers

How will an increase in production cost affect the market equilibrium?

Decrease supply Signup and view all the answers

What happens if there is a decrease in supply in the market?

Prices will tend to rise Signup and view all the answers

When the supply curve shifts upwards to the left, what is likely to occur in the market?

Equilibrium price will increase Signup and view all the answers

How can the government address the problem of prices being unfairly high to buyers?

Implement price ceilings Signup and view all the answers

What impact does a decrease in demand have on the equilibrium price and quantity?

Equilibrium price decreases, equilibrium quantity increases Signup and view all the answers

What will happen to the equilibrium price and quantity when demand decreases?

Equilibrium price and quantity both decrease Signup and view all the answers

Which of the following is NOT a determinant of changes in supply?

Price of the product Signup and view all the answers

If there is an increase in supply, what effect does it have on the equilibrium price and quantity?

Equilibrium price decreases, quantity increases Signup and view all the answers

Decrease in Demand and Market Surplus Quiz

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Questions and Answers

What will happen to the supply curve when producers face an additional cost?

How do subsidies impact production cost and supply?

What happens to market supply when there is a decrease in the number of sellers?

How do suppliers react when they expect future prices to rise?

What effect do natural disasters have on the supply curve?

What is market equilibrium defined as?

What is likely to happen if there is a surplus in the market?

How will an increase in production cost affect the market equilibrium?

What happens if there is a decrease in supply in the market?

When the supply curve shifts upwards to the left, what is likely to occur in the market?

How can the government address the problem of prices being unfairly high to buyers?

What impact does a decrease in demand have on the equilibrium price and quantity?

What will happen to the equilibrium price and quantity when demand decreases?

Which of the following is NOT a determinant of changes in supply?

If there is an increase in supply, what effect does it have on the equilibrium price and quantity?

What happens to the demand curve when there is a decrease in demand?

Which of these factors can cause an increase in supply?

What happens to the equilibrium price when supply increases?

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