This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 20 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When consumers react to an increase in a good's price by consuming less of that good and more of other goods. A) Substitution Effect. B) Inflationary Effect. C) Income Effect. D) Cost Effect. Show Answer Correct Answer: A) Substitution Effect. 2. If the price elasticity of a demand is less than one it means it is A) Unitary elastic. B) Inelastic. C) Congruent. D) Elastic. Show Answer Correct Answer: B) Inelastic. 3. Peanut butter becomes more expensive. What happens to the market for jelly? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: B) Demand decreases. 4. Suppose that elasticity of demand of socks is 0.7. If the price of socks is reduced by 10%, how will sales be effected? A) Sales will grow by more than 10%. B) Sales will grow by 10%. C) Sales will grow by less than 10%. D) Sales will decrease by 10%. Show Answer Correct Answer: C) Sales will grow by less than 10%. 5. The demand curve always slopes A) Down and to the right. B) Straight up and down. C) Down and to the left. D) Up and to the right. Show Answer Correct Answer: A) Down and to the right. 6. If LeBron James did advertisements for Nike shoes, this would cause the ..... curve for Nike shoes to shift ..... A) Demand right. B) Demand left. C) Supply right. D) Supply left. Show Answer Correct Answer: A) Demand right. 7. If the demand for used cars decreases after the price of a new car falls, used cars and new cars are A) Substitute goods. B) Inferior goods. C) Complementary goods. D) Normal goods. Show Answer Correct Answer: A) Substitute goods. 8. Movement between points on a demand curve is caused by a change in ..... A) Supply. B) Price. C) Shifts in demand. D) Consumers. Show Answer Correct Answer: B) Price. 9. Shows the data from the market supple schedule A) Market Demand Curve. B) Demand Curve. C) Global Perspective. D) Market Supply Schedule. Show Answer Correct Answer: D) Market Supply Schedule. 10. Demand includes people who are willing and ..... to buy a product. A) Able. B) Hopeful. C) Elastic. D) None of above. Show Answer Correct Answer: A) Able. 11. Point at which supply and demand curve intersect each other A) Price ceiling. B) Excess demand. C) Equilibrium. D) Disequilibrium. Show Answer Correct Answer: C) Equilibrium. 12. Demand schedules and curves show that the relationship between price and quantity demanded is. A) Equal. B) Direct. C) Indirect. D) None of above. Show Answer Correct Answer: C) Indirect. 13. Which item is NOT a factor that affects elasticity A) % of income. B) # of buyers or population. C) Time. D) Necessity or luxury. Show Answer Correct Answer: B) # of buyers or population. 14. As the price of a product increases, the demand for low-priced substitutes will: A) Increase. B) Decrease. C) Not change at all. D) None of above. Show Answer Correct Answer: A) Increase. 15. Which of the situations best represents equilibrium? A) Everyone who wants milk can afford it. B) The milk made equals the milk sold. C) Milk production makes good profit for manufacturers. D) The price of milk does not change much from week to week. Show Answer Correct Answer: B) The milk made equals the milk sold. 16. When producers supply more, equilibrium price will A) Fall. B) Fluctuate. C) Rise. D) Stay the same. Show Answer Correct Answer: A) Fall. 17. One of the reasons consumers choose substitutes is that A) No one can tell the difference. B) They are relatively cheaper. C) They are made in Japan. D) They are the same price and there are more of them. Show Answer Correct Answer: B) They are relatively cheaper. 18. According to the law of supply, what happens as price increases? A) The supply curve shifts to the left. B) The quantity supplied increases. C) The supply curve shifts to the right. D) The quantity supplied decreases. Show Answer Correct Answer: B) The quantity supplied increases. 19. A change in demand is shown A) Along the demand curve. B) With a new demand curve above or below the original demand curve. C) Without a demand graph. D) With a totally vertical line. Show Answer Correct Answer: B) With a new demand curve above or below the original demand curve. 20. In the short run, when the output of a firm increases, its average fixed cost: A) Remains constant. B) Decreases. C) Increases. D) First decreases and then rises. Show Answer Correct Answer: B) Decreases. 21. The Law of Demand States the following A) If P goes up, QD goes down. B) If P goes up, QD goes up. C) If P goes down, QD goes down. D) Price and QD are not related. Show Answer Correct Answer: A) If P goes up, QD goes down. 22. You express demand for a product when you A) Are willing to purchase it. B) Are able to purchase it. C) None are correct. D) Are willing And able to purchase it. Show Answer Correct Answer: D) Are willing And able to purchase it. 23. The price of Clif Bars increases. What happens to the market for Powerbars? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: A) Demand increases. 24. The Heckscher-Ohlin approach to international trade provides important insights, in A) Gains from trade. B) Effect of trade on production and consumption. C) Effect of trade on the incomes of production factors. D) All of the above. Show Answer Correct Answer: D) All of the above. 25. If income increases or the price of a complement falls, A) The supply curve of a normal good shifts leftward. B) The supply curve of a normal good shifts rightward. C) The demand curve for a normal good shifts rightward. D) The demand curve for a normal good shifts leftward. Show Answer Correct Answer: C) The demand curve for a normal good shifts rightward. 26. When the price of something increases, the quanity demanded ..... ( Law of Demand) A) Same. B) Increases. C) Decreases. D) Held constant. Show Answer Correct Answer: C) Decreases. 27. If the price of paperback books climbs above $ 10, consumers might decide to buy fewer books and choose instead to buy $ 4 magazines. This is an example of ..... A) Demand curve. B) Complement effect. C) Substitution effect. D) Income effect. Show Answer Correct Answer: C) Substitution effect. 28. A factor causing a contraction in supply could be: A) A fall in price. B) An increase in production costs. C) A fall in labour productivity. D) A rise in the price of another good produced by the same company. Show Answer Correct Answer: A) A fall in price. 29. Government's attempt to dictate the price of goods and services through ceilings or floors. Will throw the market into a surplus or a shortage. A) Price Controls. B) Price Floor. C) Price Ceiling. D) Price Match. Show Answer Correct Answer: A) Price Controls. 30. When buyers will purchase exactly as much as sellers are willing to sell, what is the condition that has been reached? A) Equilibrium. B) Demand. C) Price. D) None of above. Show Answer Correct Answer: A) Equilibrium. ← 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