This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the relationship between the Price and Quantity Demanded? A) Inverse Relationship. B) Direct Relationship. C) Positive Relationship. D) Mixed Relationship. Show Answer Correct Answer: A) Inverse Relationship. 2. ..... describes the decreasing satisfaction a consumer receives with the purchase of each additional unit A) Scarcity. B) Diminishing marginal utility. C) Demand. D) Marginal utility. Show Answer Correct Answer: B) Diminishing marginal utility. 3. If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are A) A complement to video cameras. B) A substitute good. C) An inferior good. D) A normal good. Show Answer Correct Answer: D) A normal good. 4. If a demand curve is VERTICAL, then own-price elasticity of demand for this good is equal to: A) Infinity. B) Zero. C) .One. D) None of the above. Show Answer Correct Answer: B) Zero. 5. Describes very little a change in demand with a large change in price A) Elastic. B) Inelastic. C) Demand curve. D) Price. Show Answer Correct Answer: B) Inelastic. 6. Consider the market for SUVs. If the price of gasoline increases then the Demand for these vehicles will A) Increase. B) Decrease. C) Not be affected. D) None of above. Show Answer Correct Answer: B) Decrease. 7. Which of the following will cause an increase in quantity demanded for Playstation 4's? A) Decrease in price. B) Decrease in consumer income. C) Increase in consumer incomes. D) None of above. Show Answer Correct Answer: A) Decrease in price. 8. Which are two types of GOODS? A) Normal and Inferior goods. B) Regular and substitute goods. C) Complementary and Substitute goods. D) None of above. Show Answer Correct Answer: A) Normal and Inferior goods. 9. If the price of a commodity rises by 10% and its quantity demanded falls from 40 units to 30 units, what is price elasticity of demand? A) ) 3. B) 2. C) 4. D) 2.5. Show Answer Correct Answer: D) 2.5. 10. Most communist countries have a ..... economy. A) Command. B) Market. C) Traditional. D) Mixed. Show Answer Correct Answer: A) Command. 11. Supply means that a seller is ..... and ..... to sell a good. A) Willing and happy. B) Willing and able. C) Willing and hopeful. D) None of above. Show Answer Correct Answer: B) Willing and able. 12. Which of the following is NOT held constant while moving along a supply curve? A) Expected future prices. B) The number of sellers. C) The price of the good itself. D) Prices of resources used in production. Show Answer Correct Answer: C) The price of the good itself. 13. A shortage of a good is often a signal for a producer to A) Lower production of that good. B) Lower the prices of that good. C) Shift production to another good. D) Raise the prices of that good. Show Answer Correct Answer: D) Raise the prices of that good. 14. As we use more of a product, we get less satisfaction from using each additional quantity. A) Price discrimination. B) Diminishing marginal utility. C) Marginal utility. D) Equilibrium. Show Answer Correct Answer: B) Diminishing marginal utility. 15. As prices go up, ..... goes down. A) Supply. B) Demand. C) Utility. D) None of above. Show Answer Correct Answer: B) Demand. 16. What do various points on a demand curve represent? A) Change in demand. B) Change in quantity demanded. C) Change in marginal utility. D) Change in elasticity. Show Answer Correct Answer: B) Change in quantity demanded. 17. If the price of printers goes down, what happens in the market for ink cartridges? A) Supply increases. B) Supply decreases. C) Demand increases. D) Demand decreases. Show Answer Correct Answer: C) Demand increases. 18. If thinking about the future price of a good influences your purchasing, this is caused by A) Change in taste. B) Price of a related good. C) Expectations. D) Framing. Show Answer Correct Answer: C) Expectations. 19. Price of ground beef skyrockets. Market:Hamburger buns A) Demand Up. B) Demand Down. C) Supply Up. D) Supply Down. Show Answer Correct Answer: B) Demand Down. 20. Why does quantity supplied increase as price rises? A) Existing firms produce more AND new firms enter the market. B) Existing firms produce less AND firms exit the market. C) The supply curve shifts to the left. D) Existing firms produce less AND new firms enter the market. Show Answer Correct Answer: A) Existing firms produce more AND new firms enter the market. 21. Which of the following would NOT shift the demand curve for turkey? A) An increase in income. B) A decrease in the price of ham. C) A change in tastes for turkey. D) A change in the price of a turkey. Show Answer Correct Answer: D) A change in the price of a turkey. 22. Term for the desire, ability, & willingness to buy a product. A) Complements. B) Microeconomics. C) Utility. D) Demand. Show Answer Correct Answer: D) Demand. 23. Which of the following is an example of psychological pricing? A) Charging wealthy customers higher prices than other customers. B) Charging high prices for status products. C) Using bait-and-switch pricing tactics. D) Pricing merchandise at $ 49.99 instead of $ 50. Show Answer Correct Answer: D) Pricing merchandise at $ 49.99 instead of $ 50. 24. A change in quantity demanded is represented on the demand curve as A) Movement along the demand curve. B) A shift of the demand curve. C) A change in price. D) An increase in supply. Show Answer Correct Answer: A) Movement along the demand curve. 25. The maximum amount that sellers may charge for a good or service is called a A) Price floor. B) Maximum wage. C) Minimum wage. D) Price ceiling. Show Answer Correct Answer: D) Price ceiling. 26. Law of demand shows relation between: A) Income and price of commodity. B) Price and quantity of a commodity. C) Income and quantity demand. D) Quantity demanded and quantity supplied. Show Answer Correct Answer: B) Price and quantity of a commodity. 27. Goods for which demand goes down as income goes up are better known as ..... A) Private Goods. B) Inferior Goods. C) Normal Goods. D) Public Goods. Show Answer Correct Answer: B) Inferior Goods. 28. A good that consumers will demand more of when their incomes increase? A) Inferior good. B) Complement. C) Demand curve. D) Normal good. Show Answer Correct Answer: D) Normal good. 29. An increase in the price of XBox One will cause the demand for Playstation 4 to: A) Increase. B) Decrease. C) Not change at all. D) None of above. Show Answer Correct Answer: A) Increase. 30. An individual demand curve slopes downward to the right because of the: A) Working of the law of diminishing marginal utility. B) Substitution effect of decrease in price. C) Income effect of fall in Price. D) All of the above. Show Answer Correct Answer: D) All of the above. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesDemand Quiz 1Demand Quiz 2Demand Quiz 3Demand Quiz 4Demand Quiz 5Demand Quiz 6Demand Quiz 7Demand Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books