This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 24 (12 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the pricing strategy called that has price tags end in .95 or .99? A) Psychological pricing. B) Odd-number pricing. C) Promotional pricing. D) Flexible pricing policy. Show Answer Correct Answer: A) Psychological pricing. 2. Advertising, fashion trends, and new product introductions serve to A) Create consumer needs. B) Increase income effectiveness. C) Create consumer demand. D) Minimize the income effect. Show Answer Correct Answer: C) Create consumer demand. 3. Which of the following illustrates the concept of diminishing marginal utility? A) Fred stops buying cars. B) Fred doesn't like the last car he bought. C) Fred receives less enjoyment from his 5th car than his 4th. D) Fred keeps buying cars. Show Answer Correct Answer: C) Fred receives less enjoyment from his 5th car than his 4th. 4. Rumors fly that your favorite music artist may retire at the end of the year. What happens to the market for concert tickets for this artist? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: A) Demand increases. 5. The change in consumption resulting from a change in real income A) Demand curve. B) Income effect. C) Elastic. D) Inferior good. Show Answer Correct Answer: B) Income effect. 6. Mixed economy is A) Private and public. B) Demand. C) Supply. D) None of above. Show Answer Correct Answer: A) Private and public. 7. The satisfaction you derive from an additional unit of a product is called your A) Marginal utility. B) Tastes. C) Total revenue. D) Demand. Show Answer Correct Answer: A) Marginal utility. 8. All of the following are true for goods with ELASTIC demand, EXCEPT ..... A) They are necessities. B) They have lots of substitutes. C) Buying habits change a lot when price changes. D) They are luxuries. Show Answer Correct Answer: A) They are necessities. 9. If a bunch of people lose their jobs in an area, what will happen to demand for some products? A) Go down. B) Go up. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Go down. 10. A recent scandal in which 1 million fake Chanel handbags have been discovered. There is an increase in Louis Vuitton handbags because of a change in: A) Price of a complement. B) Price of a substitute. C) Tastes and preferences. D) Income. Show Answer Correct Answer: C) Tastes and preferences. 11. If Consumer incomes increase, it will cause the demand curve for sirloin steak to shift in which direction? A) To the right. B) To the left. C) No shift at all. D) None of above. Show Answer Correct Answer: A) To the right. 12. Which of the following would cause an increase in demand for microwave ovens? A) A decrease in the price of microwave ovens. B) An anticipated price fall for microwave ovens. C) A lowering of production costs or cheaper resource prices. D) A rise in household disposable income. Show Answer Correct Answer: D) A rise in household disposable income. ← PreviousRelated 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