This quiz works best with JavaScript enabled. Home > Microeconomics > Supply > Supply – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The law of demand implies that?A. as prices rise, demand decreaseB. as prices fall, quantity demanded increaseC. as prices fall demand increasesD. as prices rise, quantity demanded increases A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 2. A group of buyer and sellers of a particular good or service A) Supply. B) Demand. C) Agency. D) Market. Show Answer Correct Answer: D) Market. 3. A graph showing the various quantities supplied at each and every price that might prevail in the market A) Supply curve. B) Subsidy. C) Supply. D) Supply elasticity. Show Answer Correct Answer: A) Supply curve. 4. An increase in price and decrease in quantity demanded A) Results in a movement downward the demand curve. B) Results in a movement upward the demand curve. C) Shifts the demand curve to the left. D) Shifts the demand curve to the right. Show Answer Correct Answer: B) Results in a movement upward the demand curve. 5. When the change of the price has little affect on supply, makes it an ..... supply A) Elastic. B) Inelastic. C) Rubber band. D) Electric. Show Answer Correct Answer: B) Inelastic. 6. Extra output due to the addition of one more unit of input. A) Total product. B) Production function. C) Hypothetical. D) Marginal product. Show Answer Correct Answer: D) Marginal product. 7. In which direction does the supply curve shift when input costs increase? A) Up. B) Down. C) Left. D) Right. Show Answer Correct Answer: C) Left. 8. When there is a change in price of a particular product and there is movement upward the demand curve it will result in ..... A) Increase in demand. B) Decrease in demand. C) Decrease in quantity demanded. D) Increase in quantity demanded. Show Answer Correct Answer: C) Decrease in quantity demanded. 9. A decrease in the number of sellers tends to ..... A) Shift the supply curve to the right. B) Make little difference in the availability for a product. C) Mean everyone selling a product gets rich quickly. D) Reduce the amount of product available in a market. Show Answer Correct Answer: D) Reduce the amount of product available in a market. 10. Extra cost of producing one additional unit of production. A) Fixed cost. B) Variable cost. C) Total cost. D) Marginal cost. Show Answer Correct Answer: D) Marginal cost. 11. The supply of the product normally decreases if A) The cost of inputs goes down. B) More producers enter the market. C) The price of the product increases. D) Taxes on the product increase. Show Answer Correct Answer: D) Taxes on the product increase. 12. A increase in product price will cause: A) QS to decrease. B) S to increase. C) QS to increase. D) S to decrease. Show Answer Correct Answer: C) QS to increase. 13. What is the effect of lower input costs? A) Decreased marginal cost. B) Higher revenues. C) Lower supply. D) Reduced profits. Show Answer Correct Answer: A) Decreased marginal cost. 14. If a change in th price of a product leads to a major change in the number of people who buy it, the demand for this produce is A) Elastic. B) Constant. C) Competitive. D) Inelastic. Show Answer Correct Answer: A) Elastic. 15. Which factor does NOT affect PES A) Time. B) Fashion and tastes. C) Availability of stocks. D) Spare Capacity. Show Answer Correct Answer: B) Fashion and tastes. 16. Which of these is a fixed cost for a store? A) Short-term workers. B) Rent. C) Advertising. D) Inventory. Show Answer Correct Answer: B) Rent. 17. A university decides to raise tuition fees to increase the total revenue it receives from students. This strategy will work if the demand for education at that university is which of the following? A) Unit Elastic. B) Inelastic. C) Elastic. D) Inversely related to price. Show Answer Correct Answer: B) Inelastic. 18. The cost of production includes the price of resources. If resources become more expensive, what will happen to supply levels? A) Increase. B) Decrease. C) Remain Constant. D) It will come to a stop. Show Answer Correct Answer: B) Decrease. 19. Level of production where marginal cost is equal to marginal revenue. A) Equalization. B) Equilibrium. C) Profit margin. D) Profit-maximizing quantity of output. Show Answer Correct Answer: D) Profit-maximizing quantity of output. 20. The price for a bag is 15$ , the demand for the bag is 450 units. Calculate the Total Revenue. A) 6750$. B) 30$. C) 300$. D) 67, 500. Show Answer Correct Answer: A) 6750$. ← PreviousNext →Related QuizzesMicroeconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 3Supply Quiz 4Supply Quiz 5Supply Quiz 6Supply Quiz 7Supply Quiz 8Supply Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books