2. Supply and Demand

Market Supply Demand Shifts — Quiz

Test your understanding of market supply demand shifts with 5 practice questions.

Practice Questions

Question 1

In the market for a normal good, if consumer income decreases, and simultaneously, a new, more efficient production method for the good is developed, what is the definite effect on the equilibrium price and quantity?

Question 2

Consider the market for a product. If the price of a substitute good increases, and at the same time, the cost of raw materials for producing the product also increases, what is the definite effect on the equilibrium price and quantity?

Question 3

In the market for a product, if a new government regulation makes production more expensive, and at the same time, a new advertising campaign successfully convinces consumers of the product's superior quality, what is the definite effect on the equilibrium price and quantity?

Question 4

If the price of a complementary good for product A decreases, and simultaneously, a new, less efficient production method for product A is introduced, what is the definite effect on the equilibrium price and quantity of product A?

Question 5

Suppose there is a decrease in the number of consumers in a market, and at the same time, a new technology makes production significantly cheaper. What will be the definite effect on the equilibrium price and quantity of the product?