This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Toys R Us is going out of business and running massive clearance sales to liquidate inventory. What happens to the market for children's books? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: B) Demand decreases. 2. If demand for a good is elastic and its price decreases, total revenue A) Cannot be predicted. B) Goes down. C) Remains the same. D) Goes up. Show Answer Correct Answer: D) Goes up. 3. An example of complementary goods would be: A) Butter and margarine. B) Hondas & Toyotas. C) Dress shirts and neckties. D) None of above. Show Answer Correct Answer: C) Dress shirts and neckties. 4. When might it be time to produce less of a product? A) When a new company just like yours opens. B) When the cost of materials is cheaper. C) When you can hire more skilled workers. D) When consumers are only willing to pay a low price for your product. Show Answer Correct Answer: D) When consumers are only willing to pay a low price for your product. 5. When prices go down A) Demand goes up. B) Demand goes down. C) Demand stays the same. D) Surpluses. Show Answer Correct Answer: A) Demand goes up. 6. Movement along the same demand curve shows: A) Expansion of demand. B) Expansion of supply. C) Expansion and contraction of demand. D) Increase and decrease of demand. Show Answer Correct Answer: C) Expansion and contraction of demand. 7. A change in quantity demanded can be caused by A) Income. B) Preferences. C) Price of a substitute. D) Price. Show Answer Correct Answer: D) Price. 8. A baseball team limiting the amount charged for buying tickets is called A) Setting a minimum price. B) Setting an equilibrium point. C) Setting a price floor. D) Setting a price ceiling. Show Answer Correct Answer: D) Setting a price ceiling. 9. If Coke suddenly became very popular, what would happen to the market for Pepsi? This would cause the ..... curve for Pepsi to shift ..... A) Demand right. B) Demand left. C) Supply right. D) Supply left. Show Answer Correct Answer: B) Demand left. 10. If there is a decrease in the price of cereal, then the ..... for milk will ..... and the curve will shift to the ..... A) Quantity demanded, decrease, left. B) Demand, increase, right. C) Demand, decrease, left. D) Quantity demanded, increase, right. Show Answer Correct Answer: B) Demand, increase, right. 11. The tendency of suppliers to offer more of a good at a higher price: A) Law of Supply. B) Law of Demand. C) Law of Economics. D) Law of Net Income. Show Answer Correct Answer: A) Law of Supply. 12. Inferior goods are those that we do not have much demand for if we can afford better alternatives.Which of these is an example of an inferior good? A) Bike. B) Taxi. C) Uber. D) Public Bus. Show Answer Correct Answer: D) Public Bus. 13. When the selling price of a good goes up, what is the relationship to the quantity supplied? A) It becomes more practical to produce more goods. B) Produce less goods. C) Demand. D) None of above. Show Answer Correct Answer: A) It becomes more practical to produce more goods. 14. Polo and Chaps, which are Ralph Lauren brands, are examples of A) Prestige pricing. B) Psychological pricing. C) Price lines. D) Promoting pricing. Show Answer Correct Answer: C) Price lines. 15. When consumers demand more goods and services at every price, equilibrium price will A) Fall. B) Fluctuate. C) Rise. D) Stay the same. Show Answer Correct Answer: C) Rise. 16. Demand can increase or decrease based on what buyers prefer at that moment based on A) Price equilibrium. B) A shift to the left. C) A shift to the right. D) Consumer tastes. Show Answer Correct Answer: D) Consumer tastes. 17. The quantity of a good or service that producers are able and willing to offer for sale at a specified price in a given period of time is A) Supply. B) Quantity sold. C) Demand. D) Quantity demanded. Show Answer Correct Answer: A) Supply. 18. ..... is a company's income from selling its products. A) Total cost. B) Total Revenue. C) Profit. D) Expenditures. Show Answer Correct Answer: B) Total Revenue. 19. The quantity demanded is the ..... of goods and services purchased at a given price A) Supply. B) Inverse. C) Price. D) Number. Show Answer Correct Answer: D) Number. 20. The supply of a good refers to: A) Quantity of the good offered for sale at a particular price per unit of time. B) Stock available for sale. C) Actual Production of the good. D) Total stock in the warehouse. Show Answer Correct Answer: A) Quantity of the good offered for sale at a particular price per unit of time. 21. Related goods like shoelaces and shoes or cell phones and earbuds is A) Price equilibrium. B) Substitutes. C) Complements. D) Marginal utility. Show Answer Correct Answer: C) Complements. 22. What is the income effect? A) When the IRS takes more of your money when you make more. B) When consumers can buy more if their income goes up. C) When the amount of money you earn increases. D) None of above. Show Answer Correct Answer: B) When consumers can buy more if their income goes up. 23. Define supply curve A) When price increases, the quantity supplied increases, and when price decreases, the quantity supplied decreases. B) Demand. C) Neither. D) None of above. Show Answer Correct Answer: A) When price increases, the quantity supplied increases, and when price decreases, the quantity supplied decreases. 24. When a consumer is able and willing to buy a good or service, he/she creates what? A) Consumption. B) Demand. C) Elasticity. D) Allocation. Show Answer Correct Answer: B) Demand. 25. Occurs when prices for goods and services rise faster than consumer income A) Equilibrium. B) Scarcity. C) Shoulder period. D) Inflation. Show Answer Correct Answer: D) Inflation. 26. All of the following are determinants of demand except ..... A) Consumer income. B) Outlook of the future by the consumer. C) Number of suppliers. D) Consumer tastes. Show Answer Correct Answer: C) Number of suppliers. 27. A tornado passes through Indianapolis, destroying many people's houses. What happens to the market for steak from St. Elmo's? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: B) Demand decreases. 28. Distinct categories of merchandise based on price, quality, and features A) Loss-leader pricing. B) Price fixing. C) Price discrimination. D) Price lines. Show Answer Correct Answer: D) Price lines. 29. It's winter. What happens to the market for trips to Disneyland? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: B) Demand decreases. 30. How would a decline in the price of cellular service affect the demand for cell phones? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Increase. ← 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