This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why would a store be willing to lose money on a loss-leader item? A) Making a profit is not important to the store. B) Loss-leaders will bring customers into the store. C) Customers will also purchase items with higher markups. D) Both the second and third answers are correct. Show Answer Correct Answer: D) Both the second and third answers are correct. 2. The ups and down of the economy A) Law of demand. B) Equilibrium. C) Law of supply. D) Business cycle. Show Answer Correct Answer: D) Business cycle. 3. Which factor generally keeps the price-elasticity of demand for a good low: A) High proportion of the consumer's income spent on it. B) Close substitutes for that good. C) Variety of uses for that good. D) Its low price. Show Answer Correct Answer: D) Its low price. 4. What happens when a company purposely prices their products very low, in an attempt to get people to try them? A) Equilibrium. B) Price floor. C) Shortage. D) Surplus. Show Answer Correct Answer: C) Shortage. 5. Characteristics of equilibrium include A) Where supply and demand intersect. B) Where QS = QD. C) No shortage and no surplus. D) All of these. Show Answer Correct Answer: D) All of these. 6. Which of the following is true about allocative efficiency? A) Social welfare is maximized. B) Social marginal benefits equals social marginal cost. C) It happens only at market equilibrium where community surplus is maximized. D) All the choices given are valid. Show Answer Correct Answer: D) All the choices given are valid. 7. In the price system of a market economy, prices are determined by A) Central planning. B) Private investors. C) Market forces. D) Political forces. Show Answer Correct Answer: C) Market forces. 8. What shows the quantities of products demanded at each price by all consumers in a market A) Demand schedule. B) Demand. C) Supply. D) None of above. Show Answer Correct Answer: A) Demand schedule. 9. The main reason individuals consume goods and services is: A) To increase demand. B) To increase personal satisfaction. C) To drive the economy. D) None of these. Show Answer Correct Answer: B) To increase personal satisfaction. 10. What are products that consumers demand less of when their incomes rise? A) Inferior goods. B) Complementary goods. C) Substitute goods. D) Normal goods. Show Answer Correct Answer: A) Inferior goods. 11. What is a company's total revenue? A) The amount they receive for selling their goods. B) The amount of profit they can expect to make. C) The price of their goods. D) The amount og goods they can expect to sell. Show Answer Correct Answer: A) The amount they receive for selling their goods. 12. Which would an economist consider a likely compliment for hamburgers? A) Mustard and ketchup. B) Hot dog buns. C) An oven. D) Water. Show Answer Correct Answer: A) Mustard and ketchup. 13. Rings are half price, so Jenna buys two. What affected her decision? A) Income effect. B) Consumer expectations. C) Consumer tastes. D) Substitution effect. Show Answer Correct Answer: A) Income effect. 14. The 'law of supply' suggests that A) Price and quantity supplied are directly related. B) Price and quantity supplied are inversely related. C) Movements along the supply curve are caused by a price fall. D) Supply will expand until market equilibrium is reached. Show Answer Correct Answer: A) Price and quantity supplied are directly related. 15. If the price on a product goes up the quantity demanded will go down. This follows the Law of A) Demand. B) Elasticity. C) Supply. D) Utility. Show Answer Correct Answer: A) Demand. 16. Which of the following allows consumers to negotiate prices? A) One-price policy. B) Flexible pricing promotion. C) Psychological pricing. D) Promotional pricing. Show Answer Correct Answer: B) Flexible pricing promotion. 17. If you are willing to pay $ 2, 000 for a laptop with some specific performance level, but end up finding that exact laptop for $ 1, 500 then how much is the consumer surplus you are enjoying. A) $ 0. B) $ 2, 000. C) $ 500. D) $ 1, 500. Show Answer Correct Answer: B) $ 2, 000. 18. Products that can be used in a place of other products A) Substitutes. B) Goods. C) Substitution effect. D) None of above. Show Answer Correct Answer: A) Substitutes. 19. A market does care about your A) Money. B) Religion. C) Hates or likes. D) Colour. Show Answer Correct Answer: A) Money. 20. According to the law of supply, the relationship between price and quantity supplied is: A) Direct. B) Inverse. C) Not correlated. D) None of above. Show Answer Correct Answer: A) Direct. 21. Some consumers will continue to buy about the same amount of a product even if the price increases. In economic terms, this represents: A) Inelastic demand. B) Flexible demand. C) Elastic demand. D) None of above. Show Answer Correct Answer: A) Inelastic demand. 22. Define inelastic demand. A) A measure of how consumers react to a change in price. B) Demand that is not very sensitive to a change in price. C) Demand that is very sensitive to a change in price. D) A measure of the way quantity supplied reacts to a change in price. Show Answer Correct Answer: B) Demand that is not very sensitive to a change in price. 23. How does the demand curve show an increase in demand? A) The curve shifts left. B) Movement along the curve. C) The curve shifts right. D) There is no change. Show Answer Correct Answer: C) The curve shifts right. 24. When a consumer is able and willing to buy a good or service, he or she creates which of the following? A) Consumption. B) Demand. C) Elasticity. D) Allocation. Show Answer Correct Answer: B) Demand. 25. What determines the price and the quantity produced of most goods? A) The interaction of supply and demand. B) Demand. C) Supply. D) None of above. Show Answer Correct Answer: A) The interaction of supply and demand. 26. Products that can be used in place of each other are called ..... A) Complements. B) Substitutes. C) Inferior goods. D) Tastes. Show Answer Correct Answer: B) Substitutes. 27. Which is NOT an economic goal of a market economy? A) Economic efficiency. B) Economic freedom. C) Economic growth and innovation. D) Economic equity. Show Answer Correct Answer: D) Economic equity. 28. The capital that is consumed by an economy or a firm in the production process is known as: A) Depreciation. B) Dead-weight loss. C) Capital loss. D) Production cost. Show Answer Correct Answer: A) Depreciation. 29. What is a basic principle of the law of demand A) When a good's price is lower, people will buy more of it. B) Everyone has a limited income that they will spend. C) Services are of interest in the same way that goods are. D) The higher the price, the more people will want the good. Show Answer Correct Answer: A) When a good's price is lower, people will buy more of it. 30. An increase in the number of fast-food restaurants A) Increases the demand for substitutes for fast-food meals. B) Raises the price of fast-food meals. C) Increases the supply of fast-food meals. D) Increases the demand for fast-food meals. Show Answer Correct Answer: C) Increases the supply of fast-food meals. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesDemand Quiz 1Demand Quiz 2Demand Quiz 3Demand Quiz 4Demand Quiz 5Demand Quiz 7Demand Quiz 8Demand Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books