Title: Quiz: Demand And Supply Analysis Quiz
Course: Business_Economics_ > Section: Module2

Q: What is the fundamental principle described by the Law of Demand?
- An increase in price leads to an increase in quantity demanded.
- An increase in price leads to a decrease in quantity demanded.
- Price has no effect on quantity demanded.
- Quantity demanded is constant regardless of price changes.
A: An increase in price leads to a decrease in quantity demanded.

Q: Where does market equilibrium occur?
- At the point where quantity demanded exceeds quantity supplied.
- At the point where quantity supplied exceeds quantity demanded.
- At the intersection of the demand and supply curves.
- At a price point above the equilibrium price.
A: At the intersection of the demand and supply curves.

Q: Which factor is NOT mentioned as influencing demand?
- Consumer preferences
- Production costs
- Income levels
- Expectations regarding future prices
A: Production costs

Q: How does an improvement in production technology affect supply?
- It decreases the quantity supplied.
- It has no effect on supply.
- It increases the quantity supplied.
- It shifts the demand curve to the left.
A: It increases the quantity supplied.

Q: What happens if the market price is above the equilibrium price?
- A shortage occurs.
- A surplus occurs.
- Demand increases.
- Supply decreases.
A: A surplus occurs.

Q: Why is understanding market equilibrium important for businesses?
- It helps businesses to increase production costs.
- It indicates the optimal price point for maximizing sales.
- It eliminates the need for marketing strategies.
- It ensures that demand will always exceed supply.
A: It indicates the optimal price point for maximizing sales.

Q: How can consumer expectations about future prices affect current demand?
- They have no impact on current demand.
- They can lead to an increase or decrease in current demand.
- They always decrease current demand.
- They only affect supply, not demand.
A: They can lead to an increase or decrease in current demand.

Q: Which of the following is an example of a complement?
- Tea and coffee
- Printers and ink cartridges
- Bread and butter
- Shoes and socks
A: Printers and ink cartridges

Q: What is the effect of a decrease in consumer income on the demand for inferior goods?
- Demand increases.
- Demand decreases.
- Demand remains unchanged.
- Demand becomes unpredictable.
A: Demand increases.

Q: How does the number of suppliers in the market affect supply?
- An increase in suppliers typically leads to a decrease in supply.
- A decrease in suppliers typically leads to an increase in supply.
- An increase in suppliers typically leads to an increase in supply.
- The number of suppliers has no effect on supply.
A: An increase in suppliers typically leads to an increase in supply.