Lesson 1.2.3
1.2.3 Supply and demand and price changes Quiz: Pearson Edexcel Business, Unit 1
20 questions
In partnership with Revision Ninja
Lesson 1.2.3, Supply and demand and price changes: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 1: Marketing and people, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
Market equilibrium occurs at the price where quantity demanded equals:
- Total revenue
- Quantity supplied
- Total cost
- Excess demand
-
What happens to market price when there is excess demand?
- Price rises
- Price stays unchanged
- Price stays constant
- Price falls
-
What happens to market price when excess supply exists in a market?
- Price rises
- Price stays unchanged
- Price falls
- Price doubles
-
If the demand curve shifts right while supply remains unchanged, equilibrium price will:
- Fluctuate
- Fall
- Remain unchanged
- Rise
-
If the supply curve shifts left while demand remains unchanged, equilibrium quantity will:
- Rise
- Double
- Fall
- Remain unchanged
-
A movement along a product's demand curve is caused by a change in:
- Advertising spend
- Production cost
- Consumer income
- Product price
-
What market condition is created when a price floor is set above equilibrium?
- Excess demand
- Market equilibrium
- Excess supply
- Supply shortage
-
Demand is Qd = 100 - 2P and supply is Qs = 20 + 3P. What is the equilibrium price?
- 12
- 20
- 16
- 28
-
Using Qd = 100 - 2P and Qs = 20 + 3P, what is the equilibrium quantity?
- 76
- 44
- 60
- 68
-
Demand is Qd = 50 - P and supply is Qs = P + 10. What is the equilibrium quantity?
- 30
- 20
- 40
- 60
-
With Qd = 50 - P and Qs = P + 10, what is the surplus or shortage at a price of £5?
- A surplus of 10 units
- A shortage of 10 units
- A shortage of 30 units
- A surplus of 30 units
-
A product's demand is Qd = 80 - 4P and supply is Qs = 20 + 2P. What is the equilibrium price?
- 14
- 12
- 10
- 8
-
If demand and supply both increase simultaneously, what happens to equilibrium quantity?
- Quantity decreases
- Quantity stays unchanged
- Quantity drops completely
- Quantity increases
-
An increase in the price of a substitute good shifts the product's demand curve:
- Along the curve
- To the right
- Vertically downwards
- To the left
-
A market shortage occurs when quantity demanded is:
- Zero
- Greater than supply
- Equal to supply
- Less than supply
-
What force automatically adjusts to push a disequilibrium market back towards equilibrium?
- Consumer income
- Price mechanism
- Government regulation
- Fixed production costs
-
What market condition is created when a price ceiling is set below equilibrium?
- Price stability
- Excess supply
- Excess demand
- Market equilibrium
-
Demand shifts right while supply shifts left. What definitely happens to equilibrium price?
- It falls
- It rises
- It remains constant
- It becomes zero
-
What directly causes a movement along a product's supply curve?
- New technology
- Product price change
- Raw material cost
- Wage increase
-
If demand falls while supply remains unchanged, what happens to equilibrium price and quantity?
- Price rises only
- Both fall
- Both rise
- Quantity rises only
Related quizzes
- Mass and niche markets, and dynamic markets Quiz · 1.1.1a · 20 questions
- Competition, risk and uncertainty in markets Quiz · 1.1.1b · 20 questions
- Market research and market segmentation Quiz · 1.1.2 · 20 questions
- Market mapping, positioning and differentiation Quiz · 1.1.3 · 20 questions
- Factors that change demand Quiz · 1.2.1 · 20 questions
- Factors that change supply Quiz · 1.2.2 · 20 questions
- Price elasticity of demand Quiz · 1.2.4 · 20 questions
- Income elasticity of demand Quiz · 1.2.5 · 20 questions
- Product and service design mix Quiz · 1.3.1 · 20 questions
- Branding and promotion Quiz · 1.3.2 · 20 questions