This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 22 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Consumers' willingness to replace a costly item with a less costly item is an example of A) The substitution effect. B) The income effect. C) Demand elasticity. D) Complements. Show Answer Correct Answer: A) The substitution effect. 2. ..... refers to how many people wish to buy that good or service. A) Demand. B) Supply. C) Service. D) None of above. Show Answer Correct Answer: A) Demand. 3. If demand is inelastic, a change in the price: A) Will not change quantity. B) Will change the quantity in same direction. C) Will change total revenue in same direction. D) Will change total revenue in the opposite direction. Show Answer Correct Answer: C) Will change total revenue in same direction. 4. A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in A) Market size. B) Price of a substitute good. C) Price of a complementary good. D) Tastes and preferences. Show Answer Correct Answer: D) Tastes and preferences. 5. A change in what factor creates movement along the demand curve? A) A change in the determinants of demand. B) A change in price. C) An increase in demand. D) A decrease in demand. Show Answer Correct Answer: B) A change in price. 6. Summer is upon us, and people begin purchasing bathing suits in large numbers. What causes this change? A) Change in the number of buyers. B) Prices or availability of substitutes. C) Change in the weather or season. D) Change in income. Show Answer Correct Answer: C) Change in the weather or season. 7. The law of supply is as price goes up supply A) Goes down. B) Goes up. C) Is unaffected. D) None of above. Show Answer Correct Answer: B) Goes up. 8. Measure of how responsive consumers are to price changes A) Elasticity of Demand. B) Inelastic. C) Scarcity. D) Unit Elastic. Show Answer Correct Answer: A) Elasticity of Demand. 9. A shortage can also be referred to as A) A surplus. B) An equilibrium. C) Excess supply. D) Excess demand. Show Answer Correct Answer: D) Excess demand. 10. What are the characteristics of demand? A) The desire and ability to buy a product. B) The ability and willingness to buy a product. C) The desire, ability, and willingness to buy a product. D) The desire. ability and willingness to sell a product. Show Answer Correct Answer: C) The desire, ability, and willingness to buy a product. 11. If the price elasticity of demand for a product equals 1, as its price rises the: A) Quantity demanded does not change. B) Total revenue increases. C) Total revenue does not change. D) Quantity demanded increases. Show Answer Correct Answer: C) Total revenue does not change. 12. If many substitutes are available, the demand for that product will probably be: A) Elastic. B) Inelastic. C) Independent. D) None of above. Show Answer Correct Answer: A) Elastic. 13. States that people buy a different quantity of a product if that product's price changes, appearing as a movement along the demand curve. A) Change in demand. B) Change in supply. C) Change in quantity demanded. D) Change in quantity supplied. Show Answer Correct Answer: C) Change in quantity demanded. 14. The downward slope of a demand curve reflects the fact that, other things constant, price and quantity demanded are A) Elastic. B) Inelastic. C) Positively related. D) Negatively related. Show Answer Correct Answer: D) Negatively related. 15. Quantity Demanded moves along the curve in response to change in A) Income. B) Preferences. C) Price. D) Expectations. Show Answer Correct Answer: C) Price. 16. What is Market economy A) Competition of prices. B) Demand. C) Supply. D) None of above. Show Answer Correct Answer: A) Competition of prices. 17. Give an example of a fixed price for a store. A) Rent or utilities. B) Demand or supply. C) None of them. D) None of above. Show Answer Correct Answer: A) Rent or utilities. 18. Which of the following will cause a decrease in demand for Chevy trucks? A) Increase in price. B) Decrease in price. C) Decrease in market size. D) None of above. Show Answer Correct Answer: C) Decrease in market size. 19. The phrase "a change in demand" most directly implies a A) Movement along the curve. B) Movement along the price curve. C) Change in quantity demanded of a good. D) Shift in the demand curve. Show Answer Correct Answer: D) Shift in the demand curve. 20. Products that tend to be used together A) Needs. B) Substitutes. C) Goods. D) Complements. Show Answer Correct Answer: D) Complements. 21. Which of the following would not cause as shift in demand? A) Lower supply. B) Increase in price. C) Decrease in income. D) Change in tastes. Show Answer Correct Answer: A) Lower supply. 22. Having a worker focus on a particular aspect of production A) Specialization. B) Decreasing Returns. C) Traditional Economy. D) Increasing Returns. Show Answer Correct Answer: A) Specialization. 23. What is a complimentary good for chips? A) Eggs. B) Salsa. C) Peanut Butter. D) Ice Cream. Show Answer Correct Answer: B) Salsa. 24. Price and demand are positively correlated in case of: A) Necessities. B) Luxuries. C) Giffen goods. D) Comforts. Show Answer Correct Answer: C) Giffen goods. 25. Celebrities everywhere start wearing athleisure. What happens to the market for athleisure? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: A) Demand increases. 26. The Law of Demand says that price and quantity have a(n) A) Direct relationship. B) Marginal utility. C) Inverse relationship. D) Diminishing utility. Show Answer Correct Answer: C) Inverse relationship. 27. A gallon of paint and a paint brush would be examples of: A) Independent goods. B) Complementary goods. C) Substitute goods. D) None of above. Show Answer Correct Answer: B) Complementary goods. 28. Which of the following pairs is an example of substitutes? A) Cereal and Milk. B) Calculators and iPods. C) Gatorade and Powerade. D) Water skiing and skateboarding. Show Answer Correct Answer: C) Gatorade and Powerade. 29. The law of demand argues that as prices for a good or service goes down then- A) Demand for those goods or services will go down. B) Demand for those goods or services will go up. C) The demand for those goods or services will stay the same. D) The company will shut down. Show Answer Correct Answer: B) Demand for those goods or services will go up. 30. Supply depends on the willingness and ability of A) Donors to contribute. B) Consumers to purchase. C) Producers to sell. D) Advertisers to promote. Show Answer Correct Answer: C) Producers to sell. ← 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