This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Describes demand when a given change in price causes a relatively smaller change in quantity demanded: A) Inelastic. B) Marginal Utility. C) Elastic. D) Market Demand. Show Answer Correct Answer: A) Inelastic. 2. For what type of good does demand fall with a rise in income levels of households? A) Inferior goods. B) Necessities. C) Luxuries. D) Substitutes. Show Answer Correct Answer: A) Inferior goods. 3. A given change in price causes a proportional change in quantity demanded. A) Rigidness. B) Unit elastic. C) Needs. D) Wants. Show Answer Correct Answer: B) Unit elastic. 4. According to the Law of Demand, when prices rise, demand for those products goes in this direction. A) Always go up. B) Up. C) Stay the same. D) Down. Show Answer Correct Answer: D) Down. 5. The term that means a change in a good's price has a very small change or no change in quantity demanded. A) Elastic demand. B) Diminishing marginal utility. C) Inelastic demand. D) None of above. Show Answer Correct Answer: C) Inelastic demand. 6. Occurs when something prompts consumers to buy different amounts at every price A) Trade off. B) Change in demand. C) Normal Goods. D) Marginal Benefit. Show Answer Correct Answer: B) Change in demand. 7. Which of the following is NOT a cause for shift in a Demand Curve? A) Population. B) Price. C) Consumer Tastes & Advertising. D) Income. Show Answer Correct Answer: B) Price. 8. Consumers used to love Outback, now they love Longhorn. Demand for Outback would ..... and the demand curve would shift ..... A) Increase, left. B) Decrease, left. C) Decrease, right. D) Increase, right. Show Answer Correct Answer: B) Decrease, left. 9. If the demand for a good increases when people's incomes increase, A) The good is an inferior good. B) The law of demand is violated. C) The good's demand curve must be upward sloping. D) The good is a normal good. Show Answer Correct Answer: D) The good is a normal good. 10. What happens to the market for plane tickets if there is a sudden economic downturn, causing many people to lose their jobs? Assume the airline industry itself is not affected. A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: B) Demand decreases. 11. How will scarcity of a good impact price? A) Price would go down. B) Price would go up. C) Price would stay the same. D) You wouldn't sell any. Show Answer Correct Answer: B) Price would go up. 12. The Law of Demand states that the quanity demanded increases as the price ..... A) Decreases. B) Increases. C) Stays the same. D) Held constant. Show Answer Correct Answer: A) Decreases. 13. The law of demand states that A) As the price increases, the quantity demanded increases. B) As the price increases, the quantity demanded stays the same. C) As the price decreases, the quantity demanded decreases. D) As the price decreases, the quantity demanded increases. Show Answer Correct Answer: D) As the price decreases, the quantity demanded increases. 14. Demand can most likely be changed by A) Productivity. B) Consumer taste. C) The number of competition. D) The number of products. Show Answer Correct Answer: B) Consumer taste. 15. An economic system in which decisions on production and consumption are made by individuals acting as buyers or sellers: A) Market. B) Command. C) Mixed. D) Traditional. Show Answer Correct Answer: A) Market. 16. The demand curve is plotted by using a product's ..... A) Prices and qualities. B) Production costs and qualities. C) Prices and quantities. D) Production costs and quantities. Show Answer Correct Answer: C) Prices and quantities. 17. For a(n) ....., a consumer's demand will increase as his or her income increases. A) Inelastic Demand. B) Complement. C) Substitute. D) Normal Good. Show Answer Correct Answer: D) Normal Good. 18. The situation that exists when quantity demanded changes greatly in response to a change in price. A) Elastic Demand. B) Inelastic Demand. C) Law of Demand. D) Demand. Show Answer Correct Answer: A) Elastic Demand. 19. The elasticity of demand of durable goods is: A) Equal to unity. B) Zero. C) Greater than unity. D) Less than unity. Show Answer Correct Answer: C) Greater than unity. 20. Higher prices generally A) Motivate consumers to buy. B) Motivate producers to enter a market. C) Discourage producers from entering a market. D) Discourage consumers from seeking a substitute. Show Answer Correct Answer: B) Motivate producers to enter a market. 21. A listing of how much of an item all consumers are willing to purchase at each price. A) Needs. B) Wants. C) Market Supply Schedule. D) Market Demand Schedule. Show Answer Correct Answer: D) Market Demand Schedule. 22. What is the basic principle of the law of demand? A) Everyone has a limited income that they will spend. B) The higher the price, the more people will want the good. C) Services are of interest in the same way that goods are. D) When a good'd price is lower, people will buy more of it. Show Answer Correct Answer: D) When a good'd price is lower, people will buy more of it. 23. The inverse relationship between price and demand-when the price goes up, demand goes down; when price goes down demand goes up. A) Law of supply. B) Equilibrium. C) Law of demand. D) Business cycle. Show Answer Correct Answer: C) Law of demand. 24. The supply curve of one of Pablo Picasso's (1881-1973) paintings would be shown as A) Upward-sloping, left-to-right. B) Downward-sloping, left-to-right. C) A vertical line. D) A horizontal line. Show Answer Correct Answer: C) A vertical line. 25. If there is a shortage, what will price do? A) Price will increase. B) Price will shift to the right. C) Price will stabilize. D) None of above. Show Answer Correct Answer: A) Price will increase. 26. The phrase means that quantity demanded varies inversely with price. A) Diminishing marginal utility. B) Law of demand. C) Demand elasticity. D) None of above. Show Answer Correct Answer: B) Law of demand. 27. Which is an example of the substitution effect? A) When the price of one item goes up, so the price of another goes up with it. B) When the price of pencils goes up, people will buy pens instead. C) When someone decides something is popular, they buy more of it. D) None of above. Show Answer Correct Answer: B) When the price of pencils goes up, people will buy pens instead. 28. When prices rise, which of the following happens to income A) It buys less. B) It buys more. C) Neither. D) None of above. Show Answer Correct Answer: A) It buys less. 29. Graphically, a change in the quantity demanded is represented by? A) Shift of the entire demand curve to the left. B) Shift of the entire demand curve to the right. C) From one point to another point along the same demand curve. D) From X to Y axis on the same supply curve. Show Answer Correct Answer: C) From one point to another point along the same demand curve. 30. If the price for peanut butter would go up, the demand for jelly would ..... A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: B) Decrease. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesDemand Quiz 1Demand Quiz 2Demand Quiz 3Demand Quiz 4Demand Quiz 5Demand Quiz 6Demand Quiz 8Demand Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books