Supply and Demand Quiz

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Questions and Answers

What is the economic model of price determination in a market?

Supply and demand

What does the supply and demand model postulate in a competitive market?

The unit price for a particular good will vary until it settles at a point where the quantity demanded equals the quantity supplied

What does the concept of supply and demand form the theoretical basis of?

Modern economics

What does the aggregate demand-aggregate supply model depict in macroeconomics?

How the quantity of total output and the aggregate price level may be determined in equilibrium Signup and view all the answers

What is a supply schedule and how is it depicted graphically?

A table that shows the relationship between the price of a good and the quantity supplied by producers; it is depicted graphically as a supply curve Signup and view all the answers

What is the focus of microeconomics?

Microeconomics focuses on the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among them. Signup and view all the answers

What does microeconomics analyze in relation to market mechanisms?

Microeconomics analyzes the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses. Signup and view all the answers

What is the goal of microeconomics?

One goal of microeconomics is to analyze the conditions under which free markets lead to desirable allocations. Signup and view all the answers

What does macroeconomics focus on?

Macroeconomics focuses on the sum total of economic activity, dealing with issues of growth, inflation, and unemployment. Signup and view all the answers

What does microeconomics deal with in relation to individuals and firms?

Microeconomics deals with the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and their interactions. Signup and view all the answers