Economics: Demand & Supply Schedules

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Questions and Answers

What is the quantity of ice creams demanded when the price is $4.00?

12 (correct)

Which price results in the highest quantity of ice creams demanded?

$3.00

$5.00

$0.00 (correct)

$6.00

At a price of $1.00, how many ice creams are demanded?

6 (correct)

What is the relationship between price and quantity demanded for ice creams?

As price decreases, quantity demanded increases. Signup and view all the answers

At a price of $2.00, what is the quantity of ice creams demanded?

8 Signup and view all the answers

If the price of ice creams is reduced from $3.00 to $2.00, what happens to the quantity demanded?

It increases to 8. Signup and view all the answers

What quantity of ice creams is demanded when the price is $3.00?

10 Signup and view all the answers

Which of the following reflects the principle of demand based on the schedule?

Higher prices lead to lower demand. Signup and view all the answers

What is the quantity supplied when the price of ice cream is $4.00?

12 Signup and view all the answers

At what price does the quantity supplied reach 0 units?

$0.00 Signup and view all the answers

How many units are supplied at a price of $1.00?

18 Signup and view all the answers

What is the price at which 15 units of ice cream are supplied?

$5.00 Signup and view all the answers

If the price of ice cream increases from $3.00 to $4.00, what change occurs in the quantity supplied?

Increases by 6 units Signup and view all the answers

At which price does the highest quantity supplied occur?

$5.00 Signup and view all the answers

How many units are supplied at a price of $2.00?

6 Signup and view all the answers

What is the slope of the supply schedule based on the provided data?

Increasing Signup and view all the answers

What effect does a fall in the price of Biryani have on the demand for Pepsi?

It shifts the demand curve for Pepsi upwards. Signup and view all the answers

Which factor does NOT affect the quantity demanded response to price?

The income level of consumers. Signup and view all the answers

According to the law of supply, what happens when the price of a good rises?

The quantity supplied rises. Signup and view all the answers

In which scenario is the demand likely to be more responsive to price changes?

When the good is a luxury and substitutes are available. Signup and view all the answers

Which of the following describes the quantity supplied of a good?

The amount sellers are willing and able to sell. Signup and view all the answers

How does the availability of close substitutes affect the demand for a good?

It makes the demand more elastic. Signup and view all the answers

What is the relationship between the time horizon and quantity demanded response to price changes?

Response is higher in the long run than in the short run. Signup and view all the answers

What does the term 'law of supply' imply?

The quantity supplied increases when the price increases. Signup and view all the answers

What does a supply schedule illustrate?

The relationship between the price of a good and the quantity supplied. Signup and view all the answers

Which of the following is included in Amul's supply schedule for ice creams?

Quantity supplied at price $4.00 is 12 ice creams. Signup and view all the answers

How many ice creams are supplied when the price is $3.00?

9 ice creams Signup and view all the answers

What principle does Amul's supply schedule obey?

The law of supply Signup and view all the answers

At what price does Amul supply the maximum quantity of ice creams?

$6.00 Signup and view all the answers

If the price of ice creams decreases to $1.00, how many ice creams would be supplied according to the schedule?

0 ice creams Signup and view all the answers

What is the quantity supplied at a price of $5.00 according to Amul's supply schedule?

15 ice creams Signup and view all the answers

Which of the following correctly represents Amul's supply schedule?

Price of $4.00 correlates with a quantity of 12 ice creams. Signup and view all the answers

What is the effect of a fall in input prices on the supply curve?

It shifts the supply curve to the right. Signup and view all the answers

What are considered non-price determinants of supply?

Input prices and technology. Signup and view all the answers

How does a decrease in wages influence the supply of a product?

It increases the quantity supplied at every price level. Signup and view all the answers

Which of the following describes the relationship between price and quantity supplied, when other factors remain constant?

An increase in price typically results in an increase in quantity supplied. Signup and view all the answers

Which of the following is a correct consequence of a rising price of raw materials?

Production becomes less profitable, decreasing quantity supplied. Signup and view all the answers

What can be inferred when the supply curve shifts to the left?

Production costs have likely increased. Signup and view all the answers

If the price of milk falls, what is the most likely short-term reaction for suppliers?

They will reduce the quantity supplied. Signup and view all the answers

What does a rightward shift in the supply curve generally indicate?

Increased supply due to improvements in production factors. Signup and view all the answers

Study Notes

Robbin's Demand Schedule & Curve

The Quantity Demand of Ice Cream increases as the Price of Ice Cream decreases.
The Demand Schedule shows the different quantities of Ice Cream demanded at different prices.
The Demand Curve is a graphical representation of the Demand Schedule.

Supply Schedule

The Supply Schedule is a table that shows the quantity of goods that sellers are willing and able to sell at different prices.
The Law of Supply states that the quantity supplied of a good increases as the price of a good increases.
The Supply Schedule for Amul's Ice Creams follows the Law of Supply.

Amul's Supply Schedule & Curve

The Supply Schedule shows the different quantities of Ice Cream supplied at different prices.
The Supply Curve is a graphical representation of the Supply Schedule.

Supply Curve Shifters

The Supply Curve shifts when there are changes in non-price determinants of supply
Examples of non-price determinants include input prices.

Supply Curve Shifters: Input Prices

Input prices are the costs of the resources needed to produce a good. An example includes the price of raw materials.
When input prices fall, firms will supply a larger quantity of goods at each price because the production process becomes more profitable. This shifts the Supply Curve to the right.

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Description

Explore the fundamentals of demand and supply schedules through this quiz. Understand how pricing affects the quantity demanded and supplied for ice cream, and learn about the graphical representations of these schedules. This quiz will also cover supply curve shifters and their impact on market dynamics.