Question 1

What are the fundamental factors that drive demand and supply?

Question 1 options:

Buyers and sellers

The global economy and the price of oil

The ability to buy and sell on credit.

The rich and the not-so-rich

Question 2

What is the key factor in establishing markets?

Question 2 options:

The need for the supply of a good or product to equal its demand

The need for multiple buyers and sellers

The need for surplus goods

The need for cheap labor and high demand

Question 3

3. What is needed in order to have demand?

Question 3 options:

Buyers who are willing and able to buy a particular product or service

High surplus that causes market equilibrium

The lowest price for high quality goods

A popular product or service

Question 4

If the buyer wants to buy 300 items at a low price but the seller only wants to sell 2 at that price, what has been created?

Question 4 options:

A shortage

A stalemate

An inverse economy

Market equilibrium

Question 5

When demand goes up or down, which one of the following best describes what is happening?

Question 5 options:

A shift is occurring in the entire price-quantity relationship

Nothing is happening; the market adjusts itself when demand changes

A shift is occurring in the entire price-quantity relationship, and supply inventories are exceeding demand requirements

Supply inventories are exceeding demand requirements

Question 6

When the quantity of supply exceeds the demand, what has been created?

Question 6 options:

Inflation

A shortage

Stagflation

A surplus

Question 7

As prices decrease, what happens to demand?

Question 7 options:

It increases

It stays the same

None of the answers are correct.

It decreases

Question 8

What happens to quantity when prices go down?

Question 8 options:

It stays equal to demand

It starts to reduce

It goes down only if the product is of high quality

It increases to keep up with demand

Question 9

What is the difference between 'demand' and 'quantity demanded'?

Question 9 options:

Demand is the entire relationship

There is no difference, both terms mean the same thing.

Demand deals with inventory and quantity demanded is what's available for sale

Demand is the actual specific quantity

Question 10

When the price at which the quantity supplied equals the quantity demanded, we have

Question 10 options:

a stagnant economy

the equilibrium quantity

very little profit

the equilibrium price

Question 11

The following section is True/False. Do not read more into each statement or question than what is written.

When we talk about demand going up or down, we're talking about the entire price-quantity relationship shifting.

Question 11 options: True False Question 12

A shortage is always the result of a seller running out of inventory.

Question 12 options: True False Question 13

Equilibrium is best described as profits and losses being the same.

Question 13 options: True False Question 14

To establish a market, you need both demand and supply.

Question 14 options: True False Question 15

Technological improvements will make the supply go up but also increase production costs.

Question 15 options: True False