This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 23 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Change in quantity demanded because of a change in price that alters consumers' real income. A) Marginal utility. B) Income effect. C) Substitution effect. D) Diminishing marginal utility. Show Answer Correct Answer: B) Income effect. 2. Why does demand generally become more elastic over time? A) People don't change their shopping behavior over time. B) Few substitutes become available. C) People buy more products over time. D) People have time to find substitutes and change behaviors. Show Answer Correct Answer: D) People have time to find substitutes and change behaviors. 3. The non-price factors that shift the demand curve to the right or left. A) Determinants of demand (TIMER). B) Demand elasticity. C) Demand. D) None of above. Show Answer Correct Answer: A) Determinants of demand (TIMER). 4. This part of the market determines DEMAND A) Store owners. B) Suppliers. C) Buyers. D) Sellers. Show Answer Correct Answer: C) Buyers. 5. The effect that increasing or decreasing prices has on the buying power of a person is better known as ..... A) Income Effect. B) Diminishing Marginal Returns. C) Substitution Effect. D) Inflation. Show Answer Correct Answer: A) Income Effect. 6. What would change the quantity demanded? A) The economy is experiencing a recession. B) The price increases. C) The supplies become more expensive. D) Your market campaign was a success. Show Answer Correct Answer: B) The price increases. 7. Definition of Marginal Utility A) The satisfaction from consumption. B) The extra consumption from last unit consumed. C) To total satisfaction from consuming a product. D) The extra satisfaction from the last unit consumed. Show Answer Correct Answer: D) The extra satisfaction from the last unit consumed. 8. Which of these is neither a good nor a service? A) A gallon of gasoline. B) A piano lesson. C) A meal at a restaurant. D) A $ 20 bill. Show Answer Correct Answer: D) A $ 20 bill. 9. When the price of Product A increases, the quantity demanded for Product A ..... ? A) Increases. B) Reverses. C) Remains the same. D) Decreases. Show Answer Correct Answer: D) Decreases. 10. A decrease in the quantity supplied is represented by a A) Rightward shift in the supply curve. B) Movement up the supply curve. C) Leftward shift in the supply curve. D) Movement down the supply curve. Show Answer Correct Answer: D) Movement down the supply curve. 11. Inferior goods are those for which demand increases as A) Income decreases. B) Income increases. C) The price of a substitute rises. D) The price of a substitute falls. Show Answer Correct Answer: A) Income decreases. 12. An economist would probably state that in a market economy, prices are generally determined by the interaction between A) Buyers and sellers. B) Wholesalers and retailers. C) Producers and labor unions. D) Consumers and government officials. Show Answer Correct Answer: A) Buyers and sellers. 13. A surplus happens when A) Prices are too low relative to consumer demand. B) Prices are too high relative to consumer demand. C) Prices are too low relative to producer demand. D) Prices are too high relative to producer demand. Show Answer Correct Answer: B) Prices are too high relative to consumer demand. 14. A shift to the right of the demand results in an A) Decrease in demand. B) Contraction in demand. C) Expansion in demand. D) Increase in quantity demanded. Show Answer Correct Answer: D) Increase in quantity demanded. 15. This determinant of demand describes the tendency of consumers to exchange a similar, lower-priced product for another product that is relatively more expensive. A) Substitution Effect. B) Complimentary Effet. C) Market Size. D) Income Effect. Show Answer Correct Answer: A) Substitution Effect. 16. Demand can be changed by A) The number of competition. B) Productivity. C) The number of products. D) Consumer taste. Show Answer Correct Answer: D) Consumer taste. 17. Command economy is A) Income determined. B) Demand. C) Supply. D) None of above. Show Answer Correct Answer: A) Income determined. 18. What determines how a change in price will affect total revenue for a company? A) Elasticity of Demand. B) The company's pricing policy. C) Values of Elasticity. D) The Consumer's Incomes. Show Answer Correct Answer: A) Elasticity of Demand. 19. The government passes a personal-income tax cut (i.e., the tax cut is for individuals, not businesses). What happens to the market for shoes? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: A) Demand increases. 20. Technology used to make cars improves. This will cause.. A) Supply to Increase. B) Demand to increase. C) Supply to Decrease. D) Demand to Decrease. Show Answer Correct Answer: A) Supply to Increase. 21. The additional expense of producing one more unit of a product is called A) Marginal labor. B) Marginal revenue. C) Marginal product. D) Marginal cost. Show Answer Correct Answer: D) Marginal cost. 22. Products that compete with one another are called: A) Substitute goods. B) Complimentary goods. C) Resources. D) None of above. Show Answer Correct Answer: A) Substitute goods. 23. When the percentage change in quantity demanded is more than the percentage change in price, the elasticity of demand is ..... A) Perfectly inelastic. B) Elastic. C) Inelastic. D) Perfectly elastic. Show Answer Correct Answer: B) Elastic. 24. The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a ..... decrease in the quantity demanded. A) 2 percent. B) 5 percent. C) 10 percent. D) 50 percent. Show Answer Correct Answer: D) 50 percent. 25. According the the law of demand, when price increases, the quantity demanded decreases. This shows that there is a(n) ..... relationship. A) Similar. B) Converse. C) Concurrent. D) Inverse. Show Answer Correct Answer: D) Inverse. 26. When you become "richer" or "poorer" with a change in the prices of products. A) Income effect. B) Substitution effect. C) Diminishing marginal utility. D) None of above. Show Answer Correct Answer: A) Income effect. 27. Suppliers often reduce prices in an because they A) Have a shortage of products to sell. B) Have a surplus of products to sell. C) Want to decrease consumer demand. D) Want to increase the product supply. Show Answer Correct Answer: B) Have a surplus of products to sell. 28. A change in the price of a good causes people to buy more or less of an item. This best describes the concept of A) The demand curve. B) Change in quantity demanded. C) Change in demand. D) Elasticity. Show Answer Correct Answer: B) Change in quantity demanded. 29. All of the following must exist for there to be demand EXCEPT A) An ability to buy a product. B) A willingness to buy a product. C) Producers to sell a product. D) A desire to buy a product. Show Answer Correct Answer: C) Producers to sell a product. 30. If there is a decrease in demand, the graph will shift to the A) Down. B) Up. C) Right. D) Left. Show Answer Correct Answer: D) Left. ← 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