This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Iceberg & romaine are two different types of lettuce. For most consumers, iceberg and romaine are A) Inferior goods. B) Resources. C) Complements. D) Substitutes. Show Answer Correct Answer: D) Substitutes. 2. As more units of a product are consumed, the satisfaction from each additional unit declines. A) Determinents of demand (TIMER). B) Demand elasticity. C) Diminishing marginal utility. D) None of above. Show Answer Correct Answer: C) Diminishing marginal utility. 3. A graph that illustrates the quantity demanded at all possible prices at a given time. A) Demand curve. B) Demand schedule. C) Law of demand. D) Demand chart. Show Answer Correct Answer: A) Demand curve. 4. ..... is the extra usefulness gained from using one more unit of a product. A) Diminishing marginal utility. B) Marginal utility. C) Quantity demanded. D) Demand. Show Answer Correct Answer: B) Marginal utility. 5. A drop in the price of a compact disc shifts the demand curve for prerecorded tapes leftward. From that you know compact discs and prerecorded tapes are A) Inferior goods. B) Normal goods. C) Complements. D) Substitutes. Show Answer Correct Answer: D) Substitutes. 6. If a price is above equilibrium price, it creates a ..... A) Shortage. B) Surplus. C) Market price. D) Demand. Show Answer Correct Answer: B) Surplus. 7. How is a shortage created? A) When demand increases. B) When demand decreases. C) When demand stagnates. D) When supply increases. Show Answer Correct Answer: A) When demand increases. 8. If bad weather destroys much of the wheat crop, then A) The price effect will cause growers to sell less wheat at lower prices. B) Growers will offer less wheat at each and every price. C) No wheat products will be produced that year. D) None of the above. Show Answer Correct Answer: B) Growers will offer less wheat at each and every price. 9. What goes on the horizontal axis (x axis) of a demand graph? A) Price. B) Quantity demanded. C) Quantity supplied. D) Change in demand. Show Answer Correct Answer: B) Quantity demanded. 10. The law of demand argues that as prices rise A) The quantity demanded will fall. B) The quantity demanded will rise. C) The demand curve will shift to the right. D) Quantity demanded will fall due to a decrease in demand. Show Answer Correct Answer: A) The quantity demanded will fall. 11. This is a chart that lists how much of a good a supplier will offer at different prices: A) Demand Schedule. B) Supply Schedule. C) Economics Schedule. D) Profit Schedule. Show Answer Correct Answer: B) Supply Schedule. 12. When prices go down, quantity demanded increases; when prices go up, quantity demanded goes down. A) Law of Demand. B) Law of Supply. C) Social Darwinism. D) Population Control. Show Answer Correct Answer: A) Law of Demand. 13. What would happen to the overall demand for tennis balls if the price of tennis rackets went down? A) Increase. B) Decrease. C) Not effected. D) None of above. Show Answer Correct Answer: A) Increase. 14. What is the main casue of a change in quantity demanded? A) Price. B) Substitution. C) Income effect. D) Changes in revenue. Show Answer Correct Answer: A) Price. 15. Our economic system is known as what type A) Socialism. B) Free Market. C) Command. D) Unitary. Show Answer Correct Answer: B) Free Market. 16. When quantity demanded exceeds quantity supplied at a certain cost A) Shortage. B) Surplus. C) Fad. D) Search costs. Show Answer Correct Answer: A) Shortage. 17. A period of moderate demand A) Shoulder period. B) Scarcity. C) Inflation. D) Equilibrium. Show Answer Correct Answer: A) Shoulder period. 18. Shift of the Demand curve to the right is called A) Decrease in demand. B) Contraction in demand. C) Expansion in demand. D) Increase in quantity demanded. Show Answer Correct Answer: D) Increase in quantity demanded. 19. The point at which supply and demand are the same A) Equilibrium. B) Law of demand. C) Law of supply. D) Business cycle. Show Answer Correct Answer: A) Equilibrium. 20. Goods that tend to "go together" are called: A) Substitute goods. B) Complimentary goods. C) Consumer goods. D) None of above. Show Answer Correct Answer: B) Complimentary goods. 21. Which among the following is a cause of inflation? A) Unfavourable balance of payment. B) A hike in the CRR by the central bank of the country. C) Rise in external loans. D) Deficit financing. Show Answer Correct Answer: D) Deficit financing. 22. This factor has the greatest impact in determining what consumers want to buy A) Features. B) Price. C) Battery life. D) Color. Show Answer Correct Answer: B) Price. 23. A demand schedule is a ..... A) Line. B) Table. C) Curve. D) Number. Show Answer Correct Answer: B) Table. 24. A reduction in the overall population of an area will likely cause a demand curve to shift A) Left. B) Right. C) Up. D) Not at all. Show Answer Correct Answer: A) Left. 25. The desire, ability and willingness to buy a product. A) Supply. B) Demand. C) Needs. D) Wants. Show Answer Correct Answer: B) Demand. 26. When the price of good A rises, people start to drink good B. In this case, what is good B considered? A) Complementary good. B) Luxury good. C) Normal good. D) Substitute good. Show Answer Correct Answer: D) Substitute good. 27. Imagine a market for apples where the demand function is Qd = 50-3P and the supply function is Qs =-20 + 7P. What is the equilibrium price (Pe) of the market. A) 7.5. B) 7. C) 17.5. D) 4.3. Show Answer Correct Answer: B) 7. 28. The ..... states that the QD for a good or service varies inversely with its price. A) Law of Demand. B) Law of Supply. C) Law of Diminishing Marginal Utility. D) Law of Substitutes. Show Answer Correct Answer: A) Law of Demand. 29. The equilibrium price is the price at which A) Producers' total revenue is highest. B) Consumers start reducing demand. C) Demand and supply curves intersect. D) Neither demand nor supply will shift. Show Answer Correct Answer: C) Demand and supply curves intersect. 30. If there is an increase in demand, the demand curve will shift to the A) Left. B) Right. C) Up. D) Bottom. Show Answer Correct Answer: B) Right. Next →Related QuizzesMicroeconomics QuizzesEconomics QuizzesDemand Quiz 2Demand Quiz 3Demand Quiz 4Demand Quiz 5Demand Quiz 6Demand Quiz 7Demand Quiz 8Demand Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books