6 Questions
What is the primary determinant of price in a market economy?
Market demand
Which factor can lead to an increase in equilibrium price in a market?
Increase in the number of suppliers
What happens to quantity demanded when the price of a normal good increases?
Quantity demanded decreases
What happens when the demand for a product increases while the supply remains constant?
The equilibrium price rises and the equilibrium quantity decreases
How does consumer behavior influence market demand?
Consumer preferences and income levels affect the quantity demanded of goods and services
What is the impact of an increase in the number of sellers on market supply?
Market supply increases, leading to a decrease in equilibrium price and an increase in equilibrium quantity
Test your knowledge of market economics with this quiz! Explore the primary determinant of price in a market economy, factors leading to an increase in equilibrium price, the impact of price changes on quantity demanded for normal goods, and the effects of changes in demand and supply on market dynamics. Delve into how consumer behavior influences market demand in this insightful quiz.
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