80 Supply And Demand Trivia Questions with Answers
80 public questions with answers, drawn from the well. How many can you answer?
In economics, what is a market called when many firms sell differentiated products but entry is relatively easy?
Answer
Monopolistic competition
In economics, what type of demand curve is horizontal at a market price?
Answer
Perfectly elastic demand
In economics, what market structure has many sellers offering differentiated products?
Answer
Monopolistic competition
In economics, what is a market called when one firm's output becomes another firm's input?
Answer
Intermediate goods market
In economics, what paradox asks why water is cheap while diamonds are expensive despite water’s greater usefulness?
Answer
Diamond–water paradox
What 1890 economics book by Alfred Marshall popularized the familiar supply-and-demand diagram?
Answer
Principles of Economics
In economics, what measure compares the percentage change in quantity demanded with the percentage change in price?
Answer
Price elasticity of demand
In economics, what term describes the minimum price a seller will accept for a particular good?
Answer
Reservation price
In economics, what condition describes an allocation where the price of a good equals its marginal cost?
Answer
Allocative efficiency
In economics, what is the maximum price a buyer is willing to pay for a specific good called?
Answer
Reservation price
In economics, what term describes a product whose demand comes from several distinct uses?
Answer
Composite demand
In economics, what elasticity measures how demand changes when consumer income changes?
Answer
Income elasticity of demand
In economics, what elasticity measures how demand for one good responds to a price change in another good?
Answer
Cross-price elasticity of demand
In the cobweb model of agricultural markets, what do farmers use to decide the next period’s output?
Answer
The previous period’s price
In economics, what is the responsiveness of quantity supplied to a change in price called?
Answer
Price elasticity of supply
In economics, what is a tax charged on each unit of a good or service called?
Answer
Per-unit tax
In economics, what is the term for a change in quantity demanded caused by a product’s own price change?
Answer
Movement along the demand curve