This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a basic principle of the law of demand A) The higher the price, the more people will want the good. B) Everyone has a limited income that they will spend. C) When a good's price is lower, people will buy more of it. D) Services are of interest in the same way that goods are. Show Answer Correct Answer: C) When a good's price is lower, people will buy more of it. 2. 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. 3. 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. 4. For what type of good does demand fall with a rise in income levels of households? A) Inferior goods. B) Substitutes. C) Luxuries. D) Necessities. Show Answer Correct Answer: A) Inferior goods. 5. A given change in price causes a proportional change in quantity demanded. A) Unit elastic. B) Rigidness. C) Needs. D) Wants. Show Answer Correct Answer: A) Unit elastic. 6. According to the Law of Demand, when prices rise, demand for those products goes in this direction. A) Up. B) Down. C) Stay the same. D) Always go up. Show Answer Correct Answer: B) Down. 7. 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. 8. 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. 9. Which of the following is NOT a cause for shift in a Demand Curve? A) Income. B) Price. C) Population. D) Consumer Tastes & Advertising. Show Answer Correct Answer: B) Price. 10. Consumers used to love Outback, now they love Longhorn. Demand for Outback would ..... and the demand curve would shift ..... A) Decrease, left. B) Decrease, right. C) Increase, left. D) Increase, right. Show Answer Correct Answer: A) Decrease, left. 11. 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. 12. 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. 13. How will scarcity of a good impact price? A) Price would go up. B) Price would go down. C) Price would stay the same. D) You wouldn't sell any. Show Answer Correct Answer: A) Price would go up. 14. The Law of Demand states that the quanity demanded increases as the price ..... A) Increases. B) Stays the same. C) Held constant. D) Decreases. Show Answer Correct Answer: D) Decreases. 15. 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. 16. Demand can most likely be changed by A) Consumer taste. B) Productivity. C) The number of products. D) The number of competition. Show Answer Correct Answer: A) Consumer taste. 17. 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. 18. 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. 19. 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. 20. 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. ← PreviousNext →Related QuizzesMicroeconomics QuizzesDemand Quiz 1Demand Quiz 2Demand Quiz 3Demand Quiz 4Demand Quiz 5Demand Quiz 6Demand Quiz 7Demand Quiz 8Demand Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books