This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 12 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The sum of fixed and variable costs A) Variable Costs. B) Fixed Costs. C) Marginal Costs. D) Total Costs. Show Answer Correct Answer: D) Total Costs. 2. An increase in the price of almond milk is likely to be paired with a(n) ..... in the demand for milk because the two goods are ..... A) Increase; complements. B) Decrease; substitutes. C) Increase; substitutes. D) Decrease; complements. Show Answer Correct Answer: C) Increase; substitutes. 3. Which of the following statements is true regarding markup? A) Markup does not take into account the profit you want to make. B) Markup must be sufficient to cover operating expenses and allow profit. C) Markup is not affected by operating expenses. D) None of the above. Show Answer Correct Answer: B) Markup must be sufficient to cover operating expenses and allow profit. 4. Which of the following goods would be likely to be bought in the same quantity even if it doubled in price? A) Telephones. B) Computers. C) Shoes. D) Pencils. Show Answer Correct Answer: D) Pencils. 5. Disco platform shoes are no longer "cool" to wear. How does this affect the demand of platform shoes?? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: B) Decrease. 6. What direction does supply/demand have to shift in order to affect an item's market price? A) Any. B) Right/left. C) Up/down. D) Only One Direction #bringback1D. Show Answer Correct Answer: A) Any. 7. What assumption is used when making demand curves? A) All economic factors remain constant except price. B) All consumers lie about their purchasing habits. C) Inflation always causes product prices to rise. D) Availability of product is the most important variable. Show Answer Correct Answer: A) All economic factors remain constant except price. 8. What is the willingness to buy a good or service and the ability to pay for it? A) Supply. B) Demand. C) Economics. D) Socialism. Show Answer Correct Answer: B) Demand. 9. Consumer equilibrium occurs when ..... A) They have spent all of their income. B) A person consumes quantities of three goods. C) A person consumes quantities of two goods. D) Satisfaction is maximised for a given level of income. Show Answer Correct Answer: D) Satisfaction is maximised for a given level of income. 10. Cost push inflation occurs because of: A) Wage push. B) Profit push. C) Both A and B. D) Ineffective policies of the government. Show Answer Correct Answer: C) Both A and B. 11. Market equilibrium exists when A) There is no shortage or surplus in a competitive market. B) Quantity supplied equals quantity demanded in a competitive market. C) There is no tendency for market price to rise or fall. D) All of the above conditions are achieved. Show Answer Correct Answer: D) All of the above conditions are achieved. 12. Which one of the following alternatives is an example of a market? A) All of the answers. B) The New York Stock Exchange. C) A website where freelancers can propose their services and companies can hire them. D) A place in your town where you can buy fruit. Show Answer Correct Answer: A) All of the answers. 13. Define law of supply A) As the price of a good or service rises, the quantity supplied of that good or service rises. Likewise, as the price of a good or service falls, the quantity supplied of that good or service falls. B) Demand. C) Income. D) None of above. Show Answer Correct Answer: A) As the price of a good or service rises, the quantity supplied of that good or service rises. Likewise, as the price of a good or service falls, the quantity supplied of that good or service falls. 14. A change in quantity demanded is represented by ..... A) Movement along the demand curve. B) Subsitution. C) A shift of the demand curve. D) Complements. Show Answer Correct Answer: A) Movement along the demand curve. 15. How would a decline in the birthrate affect the demand for baby clothes? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: B) Decrease. 16. Which of the following is an example of substitutes? A) Butter & margarine. B) Flashlights & batteries. C) IPhones & earbuds. D) Computers & software. Show Answer Correct Answer: A) Butter & margarine. 17. Extra usefulness, or additional satisfaction a person gets from acquiring or using one more unit of a product. A) Marginal utility. B) Diminishing marginal utility. C) Demand economics. D) Supply economics. Show Answer Correct Answer: A) Marginal utility. 18. Cardi B is trending. What happens to her music? A) Increase Supply. B) Decrease Supply. C) Increase Demand. D) Decrease Demand. Show Answer Correct Answer: C) Increase Demand. 19. The supply curve slopes ..... A) Up and to the right. B) Up and to the left. C) Down and to the right. D) Down and to the left. Show Answer Correct Answer: A) Up and to the right. 20. What factor has the greatest influence on elasticity and inelasticity of supply? A) Time or price. B) Demand. C) All of the above. D) None of above. Show Answer Correct Answer: A) Time or price. 21. Higher per-unit production costs would cause producers to A) Wait and produce more. B) Hire more workers. C) Supply more. D) Supply less. Show Answer Correct Answer: A) Wait and produce more. 22. The price of hot-dogs increase by 22% and the quantity demanded falls by 25% this indicates that demand for hot dogs is: A) Unitary elastic. B) Elastic. C) Inelastic. D) Perfectly elastic. Show Answer Correct Answer: B) Elastic. 23. The demand for "necessities" like electricity tend to be: A) Elastic. B) Inelastic. C) Neither. D) None of above. Show Answer Correct Answer: B) Inelastic. 24. Commodity having inelastic demand is: ..... A) Car. B) Cloth. C) Pen. D) Medicine. Show Answer Correct Answer: D) Medicine. 25. An oil refinery fire could cause the price of gas to ..... A) Fluctuate wildly. B) Stabilize. C) Increase. D) Decrease. Show Answer Correct Answer: C) Increase. 26. Lower prices generally A) Discourage producers from leaving a market. B) Discourage consumers from seeking a substitute. C) Motivate producers to enter the market. D) Motivate consumers to buy. Show Answer Correct Answer: D) Motivate consumers to buy. 27. If suddenly, a large population increase occurred, what impact would it have on the housing market? A) Prices would remain constant. B) There would be a surplus of homes on the market. C) It would shift the demand curve to the left. D) It would shift the demand curve to the right. Show Answer Correct Answer: D) It would shift the demand curve to the right. 28. How is the current demand for a good related to its future price? A) If the price is expected to drop, the current demand will fall. B) Demand will comes not fall. C) Neither. D) None of above. Show Answer Correct Answer: A) If the price is expected to drop, the current demand will fall. 29. Which of the following will cause an increase in demand for snowboards? A) More costly production methods. B) A decrease in consumer income. C) A decrease in the price of lift tickets at resorts in Colorado. D) A decrease in the population. Show Answer Correct Answer: C) A decrease in the price of lift tickets at resorts in Colorado. 30. A ..... is a listing of how much of an item consumers are willing to purchase at each price point. A) Demand Schedule. B) Market Supply Schedule. C) Demand Curve. D) Supply/Demand Curve. Show Answer Correct Answer: A) Demand Schedule. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesDemand Quiz 1Demand Quiz 2Demand Quiz 3Demand Quiz 4Demand Quiz 5Demand Quiz 6Demand Quiz 7Demand Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books