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Meaning of Demand And Supply - SS2 Economics Past Questions and Answers - page 1

1

What is demand in economics?

A

 The quantity of a good or service that producers are willing and able to sell at a particular price.

 

B

The quantity of a good or service that consumers are willing and able to buy at a particular price.

C

The cost of producing a good or service.

correct option: b
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2

What is the law of demand?

A

As the price of a good or service increases, the quantity demanded of that good or service increases.

B

As the price of a good or service decreases, the quantity demanded of that good or service decreases.

C

As the price of a good or service increases, the quantity supplied of that good or service decreases.

correct option: b
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3

What is supply in economics?

A

 The quantity of a good or service that consumers are willing and able to buy at a particular price.

 

B

The quantity of a good or service that producers are willing and able to sell at a particular price.

C

The cost of producing a good or service.

correct option: b
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4

What is the law of supply?

A

As the price of a good or service increases, the quantity demanded of that good or service increases.

 

B

As the price of a good or service decreases, the quantity demanded of that good or service decreases.

C

As the price of a good or service increases, the quantity supplied of that good or service increases.

correct option: c
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5

What factors affect demand?

A

Price, production costs, technology, and government policies.

 

B

Price, income, tastes and preferences, and the availability of substitutes.

C

Price, quantity, and profit.

correct option: b
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6

What factors affect supply?

A

Price, income, tastes and preferences, and the availability of substitutes.

 

B

Price, production costs, technology, and government policies.

C

Price, quantity, and profit.

correct option: b
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7

What is demand?

 

Demand refers to the quantity of a good or service that consumers are willing and able to purchase at a certain price and time.

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8

What is an example of supply?

An example of supply is the amount of a product that a company is willing and able to offer for sale to consumers at a certain price and time.

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9

How does price affect demand and supply?

An increase in price can decrease demand but increase supply, while a decrease in price can increase demand but decrease supply.

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