Questions on Demand and Supply

Let’s look at some multiple choice questions which are based on the concept of demand and supply in economics –

Q.1 When demand for good increases whether price for good

A) Rises

B) Falls

C) Remains Unchanged

D) None of the above

Correct answer is Option A

Q.2 What will be the consequence of rise in price of good on demand and supply for that good other things remaining constant

A) Demand will increase and supply will fall

B) Demand will decrease and supply will increase

C) Demand and supply will remain unchanged

D) None of the above

Correct answer is Option B

Q 3 Which of the following statements is true about demand and supply curve

I) Demand curve is downward sloping

II) Supply curve is upward sloping

III) Demand curve is upward sloping

IIII) Supply curve is downward sloping

A) Only I is correct

B) Both I and II are correct

C) Both III and IIII are correct

D) Only III is correct

Correct answer is Option B

Q 4 According to law of demand price and demand for a good are

A) Positively related

B) Inversely related

C) No relation

D) Positive for inferior goods and inversely for normal goods

Correct answer is Option D

Q 5 At equilibrium price for a good which of the following situation happens

A) Quantity demanded for a good is more than quantity supplied

B) Quantity Supplied for a good is more than quantity demanded

C) Demand and supply for the good are equal

D) Price can never be at equilibrium

Correct answer is Option C

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