Demand and supply are two fundamental concepts in economics that describe the relationship between the quantity of a good or service that buyers are willing and able to purchase, and the quantity that sellers are willing and able to provide. Understanding the forces of demand and supply is crucial for policymakers, business owners, and individuals, as it helps them make informed decisions about prices, production, and consumption.
Multiple choice questions (MCQs) are a popular way to test and assess understanding of demand and supply concepts. Here are a few example MCQs with answers:
Which of the following factors will shift the demand curve to the right?
a. An increase in the price of a substitute good
b. An increase in consumer income
c. A decrease in the price of the good
d. All of the above
Answer: d. All of the above
Explanation: An increase in the price of a substitute good will lead to an increase in the demand for the original good, as consumers switch to the cheaper option. An increase in consumer income will also lead to an increase in demand, as people have more disposable income to spend. A decrease in the price of the good will also lead to an increase in demand, as the good becomes more affordable.
Which of the following factors will shift the supply curve to the left?
a. An increase in the price of a substitute good
b. An increase in the price of the good
c. An increase in the cost of production
d. All of the above
Answer: c. An increase in the cost of production
Explanation: An increase in the cost of production will lead to a decrease in the quantity of the good that sellers are willing and able to provide, as they will not be able to sell the good at a profit. An increase in the price of a substitute good or the original good will lead to an increase in the supply of the original good, as sellers will be willing to produce and sell more of the good at a higher price.
In the long run, what happens to the supply of a good when the price of the good increases?
a. The supply decreases
b. The supply increases
c. The supply remains the same
d. It is impossible to determine
Answer: b. The supply increases
Explanation: In the long run, the supply of a good will increase when the price of the good increases, as sellers will be willing to produce and sell more of the good at a higher price. This is because in the long run, firms have time to adjust their production levels and enter or exit the market, and the price of the good will determine the profit potential of producing the good.
Which of the following is not a determinant of demand?
a. The price of the good
b. The price of related goods
c. Consumer income
d. The size of the population
Answer: d. The size of the population
Explanation: The size of the population is not a determinant of demand, as it does not directly affect the quantity of the good that consumers are willing and able to purchase. The price of the good, the price of related goods, and consumer income are all determinants of demand, as they all affect the quantity of the good that consumers are willing and able to purchase.
When the quantity demanded of a good exceeds the quantity supplied, what happens to the price of the good?
a. The price increases
b. The price decreases
c. The price remains the same
d. It is impossible to determine
Answer: a. The price increases
Explanation: When the quantity demanded of a good
Demand and Supply MCQs
The system of floating exchange rate requires comprehensive government intervention Answer: The system of floating exchange rate requires comprehensive government intervention 48. The opportunity cost of a pizza in terms of sandwiches is A. Pick the right option a Air transportation b Water transportation c Rail transportation d Intermodal transportation Answer: b Water transportation 16. No change in quantity demanded C. Which of the following categories of 3PL companies provide standard logistic services like warehousing, packing, and distribution? When one moves up with the supply curve, which one of these metrics is not a part of the constant factor? Statement 2 - Convexity of a curve implies that the slope of the curve diminishes as one moves from left to right. Gains from trade B.
Supply and Demand Multiple Choice Questions and Answers
. Strategic alliances provide a great opportunity for organizational learning. The accounts department receives the invoice from the vendor. Pure and perfect competition is the same market structures. Statement 4 -The total effect of a change in the price of a good on its quantity demanded is called the price effect.
Demand and Supply Questions and Answers
Distributors and retailers often rely on storage warehouses. Monopoly in international trade B. Working of the law of diminishing marginal utility B. According to the law of demand, other things remaining the same as the A. Demand forecasting involves techniques including both informal methods such as educated guesses and quantitative methods such as the use of historical sales data or current data from test markets. Inflation decreases the nominal face value of the wages while the real value increases. Pick the right option a Source facility b Offshore facility c Contributor facility d Outpost facility Answer: b Offshore facility 42.
MCQs on Demand and Supply
Include the following in your outline:Introduction - no more than two or three sentences Identify methods for communicating the strategic plan to internal and external stakeholders; make sure you identify stakeholders for both groups and how you will communicate the plan to different stakeholdersSummary of main issues being addressed in the plan and why they are a concern to the publicInfluence of stakeholders from each groupPotential detractors to the plan people or groups who might disagree or object to the plan and explain how or why they disagree or object Conclusion - no more than two or three sentences Include a minimum of two scholarly references, in addition to the strategic plan itself. The variable costs are the costs that are gained without considering the quantity produced or shipped from a facility. Source facilities need to be established in places where production cost is relatively high. Pick the right option a Distribution b Push-based c Pull-based d Supply chain management Answer: c Pull based 125. The opportunity cost of product A in terms of product B is equal to the A. Price to a change in income D.
World Energy Demand and Supply MCQ PDF
Based on this information, we can conclude with certainty that the equilibrium: A. The correct answer is Mustard. None of the above Answer: Granting Protection Demand and Supply objective questions with answers pdf download online exam test. Answer: Price, Quality, and delivery dependability 78. Pick the right option a Inventory cost b Transportation cost c Order cost d Warehouse cost Answer: b Transportation cost 112. Facility costs include the fuel of a vehicle used in transportation. Upward sloping Answer: Downward sloping 4.
300+ TOP Supply Chain Management MCQs and Answers 2022
Answer: Production facilities 53. A hike in the CRR by the central bank of the country Answer: Deficit financing 34. But in august 2012, the flour supply was reduced to 5500 kg at the market value of rupee 30kg. E-business strategies were developed in a view to meet some expectations like reducing cost, decreasing flexibility, profits. Answer: Bulk shipping 65.
MCQS on Demand and Supply
On what basis did Dickson formulate the evaluation factors? Both the statements are not correct 3. Blank tapes and prerecorded tapes are substitutes in production. A Imperfect competition B Perfect competition C Monopoly D In A and B both Answer: Monopoly 46 Which among the following is not a function of International Monetary Fund? Mention one business model. Utility terms of trade Answer: Income terms of trade 10. B a positive association between the rate of a product and the quantity demanded. Prices of substitutes should not change D. Leverage occurs when there is medium-to-high expenditure.
MCQs on Demand Analysis
International Monetary Fund Answer: World Bank 50. None of these MCQs Answer: A What is the guarantee of Scarcity? Demand curve must be linear Answer: Prices of substitutes should not change 3. These two forces influence the market economy of a particular product, industry or even a nation. Variability increases with an increase in lead time. A change in which of the following alters buying plans for cars but does NOT shift the demandcurve for cars? Answer: Economic Order Quantity 57.
