Economics - Supply and Demand: Questions And Answers

Explore Questions and Answers to deepen your understanding of supply and demand in economics.

80 Short 55 Medium 47 Long Answer Questions Question Index

Short Answer Questions

Question 1. Define supply and demand in economics.

Question 2. What factors influence the demand for a product?

Question 3. Explain the law of demand and its relationship with price.

Question 4. What is the difference between a change in quantity demanded and a change in demand?

Question 5. Describe the concept of elasticity of demand.

Question 6. What are the determinants of price elasticity of demand?

Question 7. Explain the concept of supply in economics.

Question 8. What factors influence the supply of a product?

Question 9. Explain the law of supply and its relationship with price.

Question 10. What is the difference between a change in quantity supplied and a change in supply?

Question 11. Describe the concept of elasticity of supply.

Question 12. What are the determinants of price elasticity of supply?

Question 13. Explain the concept of market equilibrium.

Question 14. What happens to price and quantity when there is a shortage in the market?

Question 15. What happens to price and quantity when there is a surplus in the market?

Question 16. Define price ceiling and its impact on the market.

Question 17. Define price floor and its impact on the market.

Question 18. Explain the concept of consumer surplus.

Question 19. Explain the concept of producer surplus.

Question 20. What is the difference between consumer surplus and producer surplus?

Question 21. Describe the concept of deadweight loss.

Question 22. What are the factors that can cause a shift in the demand curve?

Question 23. What are the factors that can cause a shift in the supply curve?

Question 24. Explain the concept of price elasticity of demand.

Question 25. What are the different types of price elasticity of demand?

Question 26. What is the formula for calculating price elasticity of demand?

Question 27. What does a price elasticity of demand greater than 1 indicate?

Question 28. What does a price elasticity of demand less than 1 indicate?

Question 29. What does a price elasticity of demand equal to 1 indicate?

Question 30. Explain the concept of income elasticity of demand.

Question 31. What does a positive income elasticity of demand indicate?

Question 32. What does a negative income elasticity of demand indicate?

Question 33. Explain the concept of cross-price elasticity of demand.

Question 34. What does a positive cross-price elasticity of demand indicate?

Question 35. What does a negative cross-price elasticity of demand indicate?

Question 36. Explain the concept of price elasticity of supply.

Question 37. What are the different types of price elasticity of supply?

Question 38. What is the formula for calculating price elasticity of supply?

Question 39. What does a price elasticity of supply greater than 1 indicate?

Question 40. What does a price elasticity of supply less than 1 indicate?

Question 41. What does a price elasticity of supply equal to 1 indicate?

Question 42. Explain the concept of cross-price elasticity of supply.

Question 43. What does a positive cross-price elasticity of supply indicate?

Question 44. What does a negative cross-price elasticity of supply indicate?

Question 45. Explain the concept of price controls.

Question 46. What are the different types of price controls?

Question 47. What is the impact of price ceilings on the market?

Question 48. What is the impact of price floors on the market?

Question 49. Explain the concept of market failure.

Question 50. What are the different types of market failures?

Question 51. Explain the concept of externalities.

Question 52. What are the different types of externalities?

Question 53. Explain the concept of public goods.

Question 54. What are the characteristics of public goods?

Question 55. Explain the concept of common resources.

Question 56. What are the characteristics of common resources?

Question 57. Explain the concept of monopolies.

Question 58. What are the characteristics of monopolies?

Question 59. Explain the concept of oligopolies.

Question 60. What are the characteristics of oligopolies?

Question 61. Explain the concept of monopolistic competition.

Question 62. What are the characteristics of monopolistic competition?

Question 63. Explain the concept of perfect competition.

Question 64. What are the characteristics of perfect competition?

Question 65. Explain the concept of economies of scale.

Question 66. What are the different types of economies of scale?

Question 67. Explain the concept of diseconomies of scale.

Question 68. What are the different types of diseconomies of scale?

Question 69. Explain the concept of constant returns to scale.

Question 70. What are the different types of market structures?

Question 71. Explain the concept of market power.

Question 72. What are the different types of market power?

Question 73. Explain the concept of price discrimination.

Question 74. What are the different types of price discrimination?

Question 75. Explain the concept of game theory.

Question 76. What are the different types of games in game theory?

Question 77. Explain the concept of dominant strategy.

Question 78. What is the difference between dominant strategy and Nash equilibrium?

Question 79. Explain the concept of Nash equilibrium.

Question 80. What is the difference between Nash equilibrium and Pareto efficiency?

Question 81. Explain the concept of Pareto efficiency.

Question 82. What is the difference between Pareto efficiency and market equilibrium?

Question 83. Explain the concept of public choice theory.

Question 84. What are the assumptions of public choice theory?

Question 85. Explain the concept of rational ignorance.

Question 86. What is the difference between rational ignorance and rational irrationality?

Question 87. Explain the concept of rational irrationality.

Question 88. What is the difference between rational irrationality and bounded rationality?

Question 89. Explain the concept of bounded rationality.

Question 90. What is the difference between bounded rationality and satisficing?

Question 91. Explain the concept of satisficing.

Question 92. What is the difference between satisficing and maximizing?

Question 93. Explain the concept of maximizing.

Question 94. What is the difference between maximizing and optimization?

Question 95. Explain the concept of optimization.

Question 96. What is the difference between optimization and equilibrium?

Question 97. Explain the concept of equilibrium.

Question 98. What is the difference between equilibrium and stability?

Question 99. Explain the concept of stability.

Question 100. What is the difference between stability and efficiency?

Question 101. Explain the concept of efficiency.

Question 102. What is the difference between efficiency and equity?

Question 103. Explain the concept of equity.

Question 104. What is the difference between equity and fairness?

Question 105. Explain the concept of fairness.

Question 106. What is the difference between fairness and justice?

Question 107. Explain the concept of justice.

Question 108. What is the difference between justice and equality?

Question 109. Explain the concept of equality.

Question 110. What is the difference between equality and social welfare?

Question 111. Explain the concept of social welfare.

Question 112. What is the difference between social welfare and welfare economics?

Question 113. Explain the concept of welfare economics.

Question 114. What is the difference between welfare economics and economic efficiency?

Question 115. Explain the concept of economic efficiency.

Question 116. What is the difference between economic efficiency and economic growth?

Question 117. Explain the concept of economic growth.

Question 118. What is the difference between economic growth and development?

Question 119. Explain the concept of economic development.

Question 120. What is the difference between economic development and sustainable development?

Question 121. Explain the concept of sustainable development.

Question 122. What is the difference between sustainable development and environmental sustainability?

Question 123. Explain the concept of environmental sustainability.

Question 124. What is the difference between environmental sustainability and ecological footprint?

Question 125. Explain the concept of ecological footprint.

Question 126. What is the difference between ecological footprint and carbon footprint?

Question 127. Explain the concept of carbon footprint.

Question 128. What is the difference between carbon footprint and greenhouse gas emissions?

Question 129. Explain the concept of greenhouse gas emissions.

Question 130. What is the difference between greenhouse gas emissions and climate change?

Question 131. Explain the concept of climate change.

Question 132. What is the difference between climate change and global warming?

Question 133. Explain the concept of global warming.

Question 134. What is the difference between global warming and ozone depletion?

Question 135. Explain the concept of ozone depletion.

Question 136. What is the difference between ozone depletion and acid rain?

Question 137. Explain the concept of acid rain.

Question 138. What is the difference between acid rain and deforestation?

Question 139. Explain the concept of deforestation.

Question 140. What is the difference between deforestation and overfishing?

Question 141. Explain the concept of overfishing.

Question 142. What is the difference between overfishing and pollution?

Question 143. Explain the concept of pollution.

Question 144. What is the difference between pollution and waste management?

Question 145. Explain the concept of waste management.

Question 146. What is the difference between waste management and renewable energy?

Question 147. Explain the concept of renewable energy.

Question 148. What is the difference between renewable energy and sustainable agriculture?

Question 149. Explain the concept of sustainable agriculture.

Question 150. What is the difference between sustainable agriculture and water scarcity?

Question 151. Explain the concept of water scarcity.

Question 152. What is the difference between water scarcity and population growth?

Question 153. Explain the concept of population growth.

Question 154. What is the difference between population growth and urbanization?

Question 155. Explain the concept of urbanization.

Question 156. What is the difference between urbanization and globalization?

Question 157. Explain the concept of globalization.

Question 158. What is the difference between globalization and income inequality?

Question 159. Explain the concept of income inequality.

Question 160. What is the difference between income inequality and poverty?

Question 161. Explain the concept of poverty.

Question 162. What is the difference between poverty and social inequality?

Question 163. Explain the concept of social inequality.

Question 164. What is the difference between social inequality and political instability?

Question 165. Explain the concept of political instability.

Question 166. What is the difference between political instability and economic instability?

Question 167. Explain the concept of economic instability.

Question 168. What is the difference between economic instability and financial crisis?

Question 169. Explain the concept of financial crisis.

Medium Answer Questions

Question 1. What is the law of supply and demand?

Question 2. How do changes in price affect the quantity demanded?

Question 3. Explain the concept of elasticity of demand.

Question 4. What factors can cause a shift in the demand curve?

Question 5. Describe the relationship between price and quantity supplied.

Question 6. What factors can cause a shift in the supply curve?

Question 7. What is the difference between a change in quantity supplied and a change in supply?

Question 8. Explain the concept of market equilibrium.

Question 9. What happens to price and quantity when there is a shortage in the market?

Question 10. What happens to price and quantity when there is a surplus in the market?

Question 11. How does the concept of supply and demand apply to labor markets?

Question 12. What is the difference between a normal good and an inferior good?

Question 13. Explain the concept of price elasticity of demand.

Question 14. What is the difference between price elasticity of demand and income elasticity of demand?

Question 15. How does the concept of supply and demand apply to the housing market?

Question 16. What is the difference between a substitute good and a complementary good?

Question 17. Explain the concept of cross-price elasticity of demand.

Question 18. What is the difference between price elasticity of demand and price elasticity of supply?

Question 19. How does the concept of supply and demand apply to the stock market?

Question 20. What is the difference between a monopoly and a perfectly competitive market?

Question 21. Explain the concept of income elasticity of demand.

Question 22. What is the difference between a price ceiling and a price floor?

Question 23. How does the concept of supply and demand apply to the labor market?

Question 24. What is the difference between a monopoly and an oligopoly?

Question 25. Explain the concept of price discrimination.

Question 26. What is the difference between a positive externality and a negative externality?

Question 27. How does the concept of supply and demand apply to the oil market?

Question 28. What is the difference between a monopoly and a monopolistic competition?

Question 29. Explain the concept of deadweight loss.

Question 30. What is the difference between a public good and a private good?

Question 31. How does the concept of supply and demand apply to the technology market?

Question 32. What is the difference between a monopoly and a duopoly?

Question 33. Explain the concept of price elasticity of supply.

Question 34. What is the difference between a positive income elasticity and a negative income elasticity?

Question 35. How does the concept of supply and demand apply to the agricultural market?

Question 36. What is the difference between a monopoly and a monopsony?

Question 37. Explain the concept of consumer surplus.

Question 38. What is the difference between a normal profit and an economic profit?

Question 39. How does the concept of supply and demand apply to the healthcare market?

Question 40. What is the difference between a monopoly and a cartel?

Question 41. Explain the concept of producer surplus.

Question 42. What is the difference between a positive cross-price elasticity and a negative cross-price elasticity?

Question 43. How does the concept of supply and demand apply to the automotive market?

Question 44. What is the difference between a monopoly and a natural monopoly?

Question 45. Explain the concept of price controls.

Question 46. What is the difference between a price taker and a price maker?

Question 47. What is the difference between a monopoly and a government monopoly?

Question 48. Explain the concept of market failure.

Question 49. What is the difference between a price elastic demand and a price inelastic demand?

Question 50. How does the concept of supply and demand apply to the energy market?

Question 51. What is the difference between a monopoly and a public monopoly?

Question 52. What is the difference between a price elastic supply and a price inelastic supply?

Question 53. How does the concept of supply and demand apply to the retail market?

Question 54. What is the difference between a monopoly and a private monopoly?

Question 55. Explain the concept of market power.

Long Answer Questions

Question 1. What is the law of supply and demand and how does it affect the economy?

Question 2. Explain the concept of elasticity of demand and its importance in understanding consumer behavior.

Question 3. Discuss the factors that influence the supply of a product in the market.

Question 4. Describe the concept of equilibrium price and quantity in the context of supply and demand.

Question 5. Explain the difference between a change in quantity demanded and a change in demand.

Question 6. Discuss the concept of price elasticity of demand and its implications for businesses.

Question 7. What are the determinants of supply elasticity and how do they affect the market?

Question 8. Explain the concept of market equilibrium and how it is achieved in a competitive market.

Question 9. Discuss the factors that can cause a shift in the demand curve.

Question 10. Explain the concept of income elasticity of demand and its significance in analyzing consumer behavior.

Question 11. What are the different types of price elasticity of demand and how are they calculated?

Question 12. Discuss the concept of cross-price elasticity of demand and its implications for substitute and complementary goods.

Question 13. Explain the concept of producer surplus and its relationship with supply and demand.

Question 14. Discuss the concept of consumer surplus and its relationship with supply and demand.

Question 15. What are the factors that can cause a shift in the supply curve?

Question 16. Explain the concept of price controls and their impact on supply and demand.

Question 17. Discuss the concept of deadweight loss and its relationship with market inefficiency.

Question 18. What are the different types of market structures and how do they affect supply and demand?

Question 19. Explain the concept of price discrimination and its implications for businesses.

Question 20. Discuss the concept of market failure and its causes.

Question 21. What are the different types of market interventions and how do they affect supply and demand?

Question 22. Explain the concept of externalities and their impact on market outcomes.

Question 23. Discuss the concept of public goods and their provision in the market.

Question 24. What are the factors that can cause a shift in the demand and supply curves simultaneously?

Question 25. Explain the concept of price elasticity of supply and its implications for producers.

Question 26. Discuss the concept of market power and its effects on supply and demand.

Question 27. What are the different types of market failures and their consequences?

Question 28. Explain the concept of market efficiency and its relationship with supply and demand.

Question 29. Discuss the concept of perfect competition and its characteristics.

Question 30. What are the factors that can cause a shift in the demand and supply curves in opposite directions?

Question 31. Explain the concept of monopoly and its implications for market outcomes.

Question 32. Discuss the concept of oligopoly and its effects on supply and demand.

Question 33. What are the different types of market power and their consequences?

Question 34. Explain the concept of monopolistic competition and its characteristics.

Question 35. Discuss the concept of game theory and its applications in understanding market behavior.

Question 36. What are the factors that can cause a shift in the demand and supply curves in the same direction?

Question 37. Explain the concept of duopoly and its implications for market outcomes.

Question 38. Discuss the concept of collusion and its effects on supply and demand.

Question 39. What are the different types of collusion and their consequences?

Question 40. Explain the concept of price leadership and its role in market coordination.

Question 41. Discuss the concept of price wars and their impact on market competition.

Question 42. What are the factors that can cause a shift in the demand and supply curves in different directions?

Question 43. Explain the concept of cartel and its implications for market outcomes.

Question 44. Discuss the concept of predatory pricing and its effects on supply and demand.

Question 45. What are the different types of predatory pricing and their consequences?

Question 46. Explain the concept of price discrimination and its role in market segmentation.

Question 47. Discuss the concept of price skimming and its impact on market entry.