Demand & Supply Demand Supply Market Equilibrium Examples Price ceiling/floor.
Demand And Supply test
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Demand And Supply testDemand And Supply test
This test consists of 10 questions designed This test consists of 10 questions designed to test your understanding of demand and to test your understanding of demand and supply theorysupply theory
The links provide you with a choice of The links provide you with a choice of answer, along with explanations and answer, along with explanations and solutions.solutions.
You will need a calculator to complete this You will need a calculator to complete this test.test.
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Question 1.Question 1.
The basic law of demand states?The basic law of demand states?
a. The lower the price the higher the quantity a. The lower the price the higher the quantity suppliedsupplied
b. The lower the price the lower the quantity b. The lower the price the lower the quantity demandeddemanded
c. The lower the price the higher the quantity c. The lower the price the higher the quantity demandeddemanded
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Correct.
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Wrong Try again.
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Wrong. Try again.
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Question 2.Question 2.
A successful promotion campaign designed to A successful promotion campaign designed to increase brand loyalty is likely to :increase brand loyalty is likely to :
A. Make price elasticity of supply more elasticA. Make price elasticity of supply more elastic
B. Make price elasticity of demand more B. Make price elasticity of demand more inelasticinelastic
C. Make price elasticity of demand more elasticC. Make price elasticity of demand more elastic
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Wrong. Try Again
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Wrong. Try again
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Correct.
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Question 3.Question 3.
Which of the following is likely to increase Which of the following is likely to increase supply without an increase in price?supply without an increase in price?
A. Mass marketing campaignA. Mass marketing campaign
B. Technological advancesB. Technological advances
C. Higher real incomes of consumersC. Higher real incomes of consumers
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Wrong.
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Correct.
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Wrong Try Again.
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Question 4.Question 4.
Which of the following is an elastic level of Which of the following is an elastic level of price elasticity of demand?price elasticity of demand?
A. 0.56A. 0.56
B. 1.0B. 1.0
C. 2.4C. 2.4
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Inelastic – try again.
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Try again
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Correct Above 1 elastic
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Question 5.Question 5.
Which of the following is likely to increase Which of the following is likely to increase demand levels?demand levels?
A.A. A fall in the price of a substituteA fall in the price of a substitute
B. A fall in the price of a complimentB. A fall in the price of a compliment
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Wrong.
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Correct
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Question 6.Question 6.
A fall in price of a good with price elasticity of A fall in price of a good with price elasticity of demand of 2.2 will demand of 2.2 will
A. Increase revenuesA. Increase revenues
B. Leave revenues unchangedB. Leave revenues unchanged
C. Decrease revenuesC. Decrease revenues
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Correct.
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No, try again
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No, Try again
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Question 7.Question 7.
An increase in real incomes willAn increase in real incomes will
A. Lead to a less than proportional increase in A. Lead to a less than proportional increase in demand for basic goods.demand for basic goods.
B. Lead to a more than proportional increase in B. Lead to a more than proportional increase in demand for luxury goodsdemand for luxury goods
1. Both1. Both
2. A only2. A only
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Wrong.
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Correct.
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Question 8.Question 8.
Which of the following are types of product are Which of the following are types of product are likely to have an inelastic Ped?likely to have an inelastic Ped?
A. PetrolA. Petrol
B. Toilet RollB. Toilet Roll
C. WaterC. Water
1. A and B1. A and B
2. B and C2. B and C
3. All of the above.3. All of the above.
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Sorry, try again
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Correct.
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Try again
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Question 9.Question 9.
A firm with products priced at 10p increases A firm with products priced at 10p increases price to 12p, Ped is 0.5. Quantity price to 12p, Ped is 0.5. Quantity demanded will change by?demanded will change by?
A.A. An increase of 20%An increase of 20%
B.B. A fall of 20%A fall of 20%
C. A fall of 10%C. A fall of 10%
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Wrong, try again.
![Page 34: Demand And Supply test](https://reader035.fdocuments.in/reader035/viewer/2022062321/56812b2b550346895d8f385e/html5/thumbnails/34.jpg)
Sorry Try again
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Correct
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Question 10.Question 10.
A firm increases price from 20p to 22p, A firm increases price from 20p to 22p, revenue falls from £40,000 to £32,000. Ped revenue falls from £40,000 to £32,000. Ped is?is?
A. 0.1A. 0.1
B. 4B. 4
C. 2C. 2
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Sorry wrong
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No, try again
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Correct. Well done.
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You have now completed the test.