Lesson 3.2.1

3.2.1 Demand and supply Quiz: OCR Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.2.1, Demand and supply: 20 multiple choice questions for the OCR Business (H431), Unit 3: External influences, written with Revision Ninja.

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The 20 questions

  1. What term describes the quantity of a product consumers are willing and able to buy at a price?

    • Demand
    • Market share
    • Equilibrium
    • Supply

  2. What occurs at the point where the demand curve intersects the supply curve?

    • Market equilibrium
    • Excess supply
    • Profit maximisation
    • Excess demand

  3. Which market type exists purely online without a face-to-face physical trading space?

    • Non-physical market
    • Local market
    • Physical market
    • Secondary market

  4. If the price of coffee rises, what happens to the demand for tea, a substitute good?

    • Increases
    • Decreases
    • Remains unchanged
    • Falls to zero

  5. What term describes a good that is consumed together with another good?

    • Substitute good
    • Complementary good
    • Inferior good
    • Normal good

  6. What immediate market condition is created if price is set above the equilibrium price?

    • Market clearing
    • Excess demand
    • Shortage
    • Excess supply

  7. Which factor causes a rightward shift of the supply curve for manufactured goods?

    • Higher raw material costs
    • Increased indirect taxes
    • Fall in market demand
    • New technology adoption

  8. How does an increase in government indirect taxes on petrol affect its supply curve?

    • Moves downwards
    • Shifts right
    • Remains unchanged
    • Shifts left

  9. What happens to equilibrium price and quantity when consumer income rises for a normal good?

    • Quantity falls
    • Both decrease
    • Both increase
    • Price falls

  10. What term refers to an economic market structure featuring many firms selling slightly differentiated products?

    • Perfect competition
    • Monopolistic competition
    • Duopoly
    • Pure monopoly

  11. A baker experiences a flour shortage. How will this affect the equilibrium price of bread?

    • Price stays constant
    • Price increases
    • Demand shifts right
    • Price decreases

  12. What is another term for the equilibrium price where supply equals demand?

    • Maximum price
    • Floor price
    • Market clearing price
    • Fixed price

  13. How should a business respond to clear a temporary surplus of unsold perishable stock?

    • Lower the price
    • Raise the price
    • Increase output
    • Reduce advertising

  14. What impact does a government production subsidy have on market equilibrium price and quantity?

    • Higher price, lower quantity
    • Higher price, higher quantity
    • Lower price, higher quantity
    • Lower price, lower quantity

  15. Which determinant specifically shifts the market demand curve rather than moving along it?

    • Production technology
    • Supply cost
    • Consumer tastes
    • Product price

  16. A concert sells out in minutes and scalpers resell tickets at triple price. What existed initially?

    • Excess supply
    • Price ceiling
    • Excess demand
    • Market equilibrium

  17. What is the definite effect on market price if supply decreases while demand simultaneously increases?

    • Price decreases
    • Quantity increases
    • Price stays constant
    • Price increases

  18. What basic economic force allocates resources in a free market economy through price signals?

    • Central planning
    • Price mechanism
    • Trade unions
    • Government legislation

  19. What happens to equilibrium price and quantity if a product's main raw material cost falls?

    • Price falls, quantity falls
    • Price rises, quantity rises
    • Price falls, quantity rises
    • Price rises, quantity falls

  20. Why might a retailer choose to operate in both physical and non-physical markets?

    • Elimination of competition
    • Guaranteed monopoly status
    • Lower overhead costs
    • Multi-channel customer reach

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