BrainMass Quizzes Economics, Basic Concepts, Demand-Supply-Equilibrium The quiz tests the basic concepts of demand, supply, and equilibrium in a free market. 1 If income tax decreases, what happens to the demand curve? Shifts to the right Shifts to the left Nothing because income is a determinant of supply It will not shift but there will be a movement along the demand curve 2 Of the following, which is a special determinant of the supply of good X? The technology used in the production of X The price of X The price of a substitute of X in production The price of a complement of X in production 3 In equilibrium: Qd > Qs Qs > Qd Qd = Qs We cannot know 4 If there is a surplus, the market is in balance there is excess supply there is excess demand the price will rise 5 If price is lower than the equilibrium price, there will be a surplus there will be a shortage the market clears any of the above is possible Submit Quiz