10 Questions
What does the law of demand state?
An increase in price causes a decrease in quantity demanded, assuming other factors remain constant
What happens to the demand for a normal good when there is an increase in income?
The demand for the normal good increases
What are substitutes in the context of demand?
Goods for which an increase in the price of one causes an increase in demand for the other
What is the impact on quantity demanded when the price of a good decreases, assuming all other factors remain constant?
Quantity demanded increases
What happens to the demand curve when the number of buyers in the market increases?
The demand curve shifts to the right
What effect does a fall in input prices have on production?
Makes production more profitable at each output price
How does an increase in the number of sellers affect quantity supplied?
Increases the quantity supplied at each price
What is the impact of a cost-saving technology on production?
Has the same effect as a fall in input prices
What does equilibrium in a market signify?
Quantity supplied equals quantity demanded
When does a surplus occur in a market?
When quantity supplied is greater than quantity demanded
Test your understanding of demand and supply in the market with this quiz. Explore concepts such as the reasons for sold-out match tickets and seasonal price fluctuations in goods like corn and tomatoes. Evaluate your knowledge of consumer and producer behavior in the marketplace.
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