This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 17 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the price elasticity of a demand is greater than one it means it is A) A steal. B) Unitary elastic. C) Inelastic. D) Elastic. Show Answer Correct Answer: D) Elastic. 2. If the number of people living in Immokalee decreases in 2021, demand for products will ..... and the demand curve will shift to the ..... A) Decrease, right. B) Decrease, left. C) Increase, left. D) Increase, right. Show Answer Correct Answer: B) Decrease, left. 3. Consumers demand based on what they think will happen in the future. A) Diminishing marginal utility. B) Substitutes. C) Complements. D) Expectations. Show Answer Correct Answer: D) Expectations. 4. How does competition affect producers in a market economy? A) They generally agree to share resources equally. B) They improve the quality of their goods to attract buyers. C) They look to the government to assign resources. D) They ration their goods equally among consumers. Show Answer Correct Answer: B) They improve the quality of their goods to attract buyers. 5. A change in one of the determinants of demand will cause ..... A) The entire demand curve to shift either to the right or the left. B) The demand curve to get shorter. C) No change in the demand curve. D) A change in the price of the good offered. Show Answer Correct Answer: A) The entire demand curve to shift either to the right or the left. 6. Economists use a supply curve to A) Show the law of supply in table form. B) Show the law of supply in graph form. C) Show the law of supply in a written description. D) Show the law of supply in chart form. Show Answer Correct Answer: B) Show the law of supply in graph form. 7. Suppose that a 2% increase in price results in a 6% decrease in quantity demanded. Own-price elasticity of demand is equal to: A) 1/3. B) 3. C) 2 . D) 6. . Show Answer Correct Answer: B) 3. 8. The tendency for the price and quantity demanded to move in opposite directions is known as A) A demand curve. B) A demand schedule. C) The law of demand. D) The quantity demanded. Show Answer Correct Answer: C) The law of demand. 9. The percentage change in quantity demanded divided by the percentage change in price is a rough measure of a good's: A) Supply elasticity of price. B) Price elasticity of supply. C) Demand elasticity of price. D) Price elasticity of demand. Show Answer Correct Answer: D) Price elasticity of demand. 10. If Mary used to buy 10 units at $ 4 each and now buys 15 units when the price is $ 4, her A) Quantity demanded has increased. B) Quantity demanded has decreased. C) Demand has increased. D) Demand has decreased. Show Answer Correct Answer: C) Demand has increased. 11. In case of a straight line demand curve meeting the two axes, the price elasticity of demand at the mid-point of the line would be: A) 0. B) 2. C) 1. D) 1.5. Show Answer Correct Answer: C) 1. 12. ITunes increases the price of all of its digital downloadable music to $ 6 per song. What causes this change? A) Prices or availability of substitutes. B) Change in the weather or season. C) Change in the number of buyers. D) Prices or availability of complementary goods. Show Answer Correct Answer: A) Prices or availability of substitutes. 13. The market equilibrium price is the price at which A) Surpluses depress the number of goods supplied. B) Shortages and surpluses will have no effect on the market. C) The government will not intervene in the market. D) The quantity demanded is the same as the quantity supplied. Show Answer Correct Answer: D) The quantity demanded is the same as the quantity supplied. 14. An increase in the price of aspirin is likely to be paired with a(n) ..... in the demand for Tylenol because the two goods are ..... A) Increase; complements. B) Decrease; complements. C) Decrease; substitutes. D) Increase; substitutes. Show Answer Correct Answer: D) Increase; substitutes. 15. When there is a shortage, producers raise prices in an attempt to A) Separate the quantity supplied and demanded. B) Raise the quantity demanded. C) Equalize the quantity supplied and demanded. D) Lower the quantity supplied. Show Answer Correct Answer: C) Equalize the quantity supplied and demanded. 16. Income elasticity of demand is defined as the responsiveness of: A) Quantity demanded to a change in income. B) Quantity demanded to a change in price. C) Price to a change in income. D) Income to a change in quantity demanded. Show Answer Correct Answer: A) Quantity demanded to a change in income. 17. Coca-Cola announces it will stop producing those iconic glass Coke bottles next month and go all aluminum. What happens to the market for glass bottles of Coke? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: A) Demand increases. 18. Which of the following would cause a change in the quantity demanded for a product? A) Changing prices of related products. B) Increasing consumer income. C) Changing consumer tastes. D) Decreasing price of product. Show Answer Correct Answer: D) Decreasing price of product. 19. Which of the following would cause a change in supply? A) A change in market price. B) A change in technology available. C) A change in the number of sellers. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Producers are willing to sell more of a good or service at a higher price than they are at a lower price A) Law of Supply. B) Law of Demand. C) Demand. D) Inelastic. Show Answer Correct Answer: A) Law of Supply. 21. Which of the following is characteristic of the expansion phase of the business cycle? A) Less discretionary income. B) Decreased competition. C) Increased consumer demand. D) Growing unemployment. Show Answer Correct Answer: C) Increased consumer demand. 22. There is a sale on Big Mac's at McDonald's. What would happen to overall demand for fries at McDonald's? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Increase. 23. Costs business owners incur no matter how much they produce A) Fixed Costs. B) Privatize. C) Variable Costs. D) Total Costs. Show Answer Correct Answer: A) Fixed Costs. 24. Which factor causes the demand curve to shift in the following situation:Bobby graduated from college and got a good job, so he decided to buy a new Lexus. A) Prices of related goods. B) Population. C) Consumer tastes & advertising. D) Income. Show Answer Correct Answer: D) Income. 25. If price of tea decreases, what is the affect on the demand for coffee? A) The demand for tea is not affected. B) The demand for coffee decreases. C) The demand for tea decreases. D) The demand for coffee increases. Show Answer Correct Answer: B) The demand for coffee decreases. 26. Which of the following does NOT shift the supply curve? A) An increase in the price of the good. B) A fall in the price of a substitute in production. C) A decrease in the wages of labor used in production of the good. D) A technological advance. Show Answer Correct Answer: A) An increase in the price of the good. 27. The term that means a small increase in a good's price causes a large change in quantity demanded. A) Elastic demand. B) Diminishing marginal utility. C) Inelastic demand. D) None of above. Show Answer Correct Answer: A) Elastic demand. 28. What goes on the horizontal axis of a demand graph? A) Price. B) Quantity demanded. C) Quantity supplied. D) Change in demand. Show Answer Correct Answer: B) Quantity demanded. 29. What kind of table lists the quantity of a good that a person will buy at different prices? A) Market demand curve. B) Market demand schedule. C) Demand schedule. D) Demand curve. Show Answer Correct Answer: C) Demand schedule. 30. Occurs when related businesses conspire to charge high prices. A) Markup. B) Price lines. C) Price fixing. D) Scarcity. Show Answer Correct Answer: C) Price fixing. ← 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