The Interaction of Demand and Supply Quiz by Shubhrata Shrestha | May 22, 2025 | 0 comments The Interaction of Demand and Supply Quiz 1. What happens to the equilibrium price if demand increases and supply remains constant? A. Price decreases B. Price remains the same C. Price increases D. Quantity decreases None 2. Which of the following is an example of joint demand? A. Tea and coffee B. Bread and butter C. Car and bicycle D. Rice and wheat None 3. Derived demand refers to: A. Demand generated by promotions B. Demand based on substitute products C. Demand driven by demand for another good D. Demand for inferior goods None 4. When price rises due to high demand and scarce supply, price is performing which function? A. Incentivising B. Signalling C. Rationing D. Allocating None 5. A shift in the demand curve to the right typically indicates: A. Decrease in price B. Decrease in quantity C. Increase in quantity and price D. No change in equilibrium None 6. Which scenario would likely shift the supply curve leftward? A. Tax cuts for producers B. Improved technology C. Increase in input costs D. Rise in consumer income None 7. Substitute goods are: A. Used together B. Unrelated goods C. Goods consumed at the same time D. Goods that can replace each other None 8. If the price of petrol rises and car demand falls, this is an example of: A. Unitary demand B. Alternative demand C. Joint demand D. Elastic demand None 9. A price signal in a free market helps: A. Control income B. Direct government intervention C. Communicate scarcity and demand D. Increase taxes None 10. When demand exceeds supply at current price, the market is in: A. Equilibrium B. Disequilibrium C. Surplus D. Productivity None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
