This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 19 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an example of a good with an inelastic demand A) Life-saving medicine. B) Television set. C) Computers. D) A particular brand of chewing gum. Show Answer Correct Answer: A) Life-saving medicine. 2. A company's income from selling its product A) Total Revenue. B) Elastic. C) Unit Elastic. D) Inelastic. Show Answer Correct Answer: A) Total Revenue. 3. Which of the following is NOT a determinant of supply? A) Improved technology. B) Population changes. C) Increase in resource price. D) Number of suppliers. Show Answer Correct Answer: B) Population changes. 4. If a price is below the equilibrium price it creates a ..... A) Market price. B) Surplus. C) Shortage. D) Supply. Show Answer Correct Answer: C) Shortage. 5. In case of an inferior good, the income elasticity of demand is: A) Negative. B) Positive. C) Infinite. D) Zero. Show Answer Correct Answer: A) Negative. 6. Which of the following practices is restricted by law? A) Price fixing. B) Price discrimination. C) Bait & switch. D) All the above. Show Answer Correct Answer: D) All the above. 7. Which is TRUE about the increase of demand? A) Shifts to the left. B) Shifts to the right. C) Shifts upward. D) None of the choices. Show Answer Correct Answer: B) Shifts to the right. 8. The amount of a good or service a consumer is willing and able to buy at various prices during a given time period. A) Determinants of demand. B) Demand elasticity. C) Demand. D) None of above. Show Answer Correct Answer: C) Demand. 9. The ..... effect occurs when an increase in price decreases a consumer's real income. A) Income. B) Demand. C) Normal Good. D) Substitute. Show Answer Correct Answer: A) Income. 10. The demand for products or services for which there are no substitutes tends to be A) Perfectly elastic. B) Somewhat elastic. C) Quite inelastic. D) Unit elastic. Show Answer Correct Answer: C) Quite inelastic. 11. A substitute is a good A) Of higher quality than another good. B) That is not used in place of another good. C) That can be used in place of another good. D) Of lower quality than another good. Show Answer Correct Answer: C) That can be used in place of another good. 12. Congress passes a law that increases taxes by 10%. What would happen to the overall demand for tickets to Fiesta Texas? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: B) Decrease. 13. When the price of steak decreases, the demand for Spam: A) Increases. B) Decreases. C) Stays the same. D) None of above. Show Answer Correct Answer: B) Decreases. 14. A general measure of consumer responsiveness to prices, a cause and effect relationship in economics. A) Elasticity. B) Rigidness. C) Wants. D) Needs. Show Answer Correct Answer: A) Elasticity. 15. Skiers flock to a town in the Rockies in January, and restaurant business booms. What factor is affecting demand? A) Market size. B) Income. C) Consumer taste. D) Substitutes. Show Answer Correct Answer: A) Market size. 16. If the price for a product rises, then, A) Supply will increase (supply curve will shift to the right). B) The demand curve will shift to the left. C) Quantity supplied will expand. D) Quantity demanded will rise. Show Answer Correct Answer: C) Quantity supplied will expand. 17. The surgeon general has just come out with a warning that eating skittles causes cancer. What would happen to the overall demand for skittles? A) Decrease. B) Increase. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Decrease. 18. Determinants of demand include income, expectations, taste, and ..... A) Unit Elasticity. B) Consumer Preference. C) Taxes. D) Marginal Equity. Show Answer Correct Answer: B) Consumer Preference. 19. What would cause the demand to move along the demand curve instead of shifting it right or left? A) Preferences. B) Price. C) Expectations. D) Income. Show Answer Correct Answer: B) Price. 20. Hot dogs and hot dog buns are typically purchased together. Economists would call these A) Elastic. B) Complements. C) Inelastic. D) Stubstitues. Show Answer Correct Answer: B) Complements. 21. If the government set a limit on the cost of baseball bats, this action would be called A) Setting a price floor. B) Setting an equilibrium price. C) Setting a price ceiling. D) Setting a minimum price. Show Answer Correct Answer: C) Setting a price ceiling. 22. Price goes on ..... A) The horizontal axis. B) The vertical axis. C) At the origin. D) The z axis. Show Answer Correct Answer: B) The vertical axis. 23. The number of potential buyers of a product. A) Demand. B) Market size. C) Entrepreneurs. D) None of above. Show Answer Correct Answer: B) Market size. 24. The resource that includes equipment, machinery, buildings, and tools. A) Land. B) Labour. C) Capital. D) Enterprise. Show Answer Correct Answer: C) Capital. 25. This is illustrated by movement along the demand curve A) Income effect. B) Change in quantity demanded. C) Shift in quantity demanded. D) Complement effect. Show Answer Correct Answer: B) Change in quantity demanded. 26. Extension of demand is affected by A) Price. B) Season. C) Income. D) Taste. Show Answer Correct Answer: A) Price. 27. The following are causes of shift in demand EXCEPT the one: A) Change in price. B) Change in income. C) Change in prices of substitutes. D) Change in fashion. Show Answer Correct Answer: A) Change in price. 28. What is meant by Autarky in international trade? A) Monopoly in international trade. B) Imposition of restrictions in international trade. C) Removal of all restrictions from international trade. D) The idea of self sufficiency and no international trade by a country. Show Answer Correct Answer: D) The idea of self sufficiency and no international trade by a country. 29. Goods that consumers demand less of when their incomes rise. A) Marginal Benefit. B) Trade off. C) Inferior Goods. D) Normal Goods. Show Answer Correct Answer: C) Inferior Goods. 30. All of the following will cause a shift of the demand curve for a good except A) A change in the price of the good. B) A change in income. C) A change in preferences. D) A change in the price of a closely related good. Show Answer Correct Answer: A) A change in the price of the good. ← 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