Practice Demand And Supply (1.2.2) - Chapter 1: Microeconomic Theory

Practise this section

8 questions

Flashcard drill
3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What is demand?
Show hintHide hint
Think about what influences your purchasing decisions.
Question 2.
What happens to demand when the price decreases?
Show hintHide hint
Remember the Law of Demand.
3Question 3.
What does the Law of Demand state?
- Prices increase demand
- Higher prices generally decrease demand
- Price has no effect on demand
Show hintHide hint
Think about how you react to price changes in your own purchases.
4Question 4.
True or False: An increase in supply leads to a higher equilibrium price.
- True
- False
Show hintHide hint
Consider how supply impacts market prices.
Question 5.
Consider a market for electric vehicles (EVs). The government increases subsidies for EV purchases. How would this effect demand, supply, and equilibrium price?
Show hintHide hint
Think about how subsidies affect purchasing power.
Question 6.
Discuss how a sudden drought affects the supply of a commodity such as wheat. How would this impact its price and quantity in the market?
Show hintHide hint
Consider the immediate effects of natural disasters on production.

4 more questions in this section. Enroll free to practise them all.