The Demand for goods or services is defined as the desire of a consumer to purchase that commodity. The Supply of goods or services is the overall availability of that commodity in the market. These two forces influence the market economy of a particular product, industry or even a nation. Show Below is a list of multiple-choice questions and answers on Demand and Supply to help students understand the topic better.
Answer: b Answer: b Answer: c Answer: c Answer: a Answer: b Answer: c Answer: c Answer: c Answer: b Answer: a Answer: a Answer: c Answer: b Answer: c Answer: c Answer: a Answer: d Answer: a Answer: d Answer: a Answer: a Answer: a Answer: b Answer: d Also See:
Which of the following will cause an increase in the supply of a product?Answer and Explanation: A technological innovation that lowers the marginal cost of producing the good will cause an increase in the market supply.
Why does supply increase as price increase?With a rise in price, the tendency is to increase supply because there is now more profit to be earned. On the other hand, when prices fall, producers tend to decrease production due to the reduced economic opportunity for profit.
Which of the following will cause the supply curve to shift to the left?An increase in factor prices should decrease the quantity suppliers will offer at any price, shifting the supply curve to the left. A reduction in factor prices increases the quantity suppliers will offer at any price, shifting the supply curve to the right.
Which of the following will cause a change in supply not quantity supplied?The correct option is: (c) A change in the market price of the good . There is only a single determinant that is responsible for the change in the quantity supplied and that is the market price. All other determinants result in a change in supply.
|