Demand Quiz 11 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. The elasticity of demand of durable goods is:

Correct Answer: B) Greater than unity.

2. Higher prices generally

Correct Answer: D) Motivate producers to enter a market.

3. A listing of how much of an item all consumers are willing to purchase at each price.

Correct Answer: D) Market Demand Schedule.

4. What is the basic principle of the law of demand?

Correct Answer: C) When a good'd price is lower, people will buy more of it.

5. The inverse relationship between price and demand-when the price goes up, demand goes down; when price goes down demand goes up.

Correct Answer: C) Law of demand.

6. The supply curve of one of Pablo Picasso's (1881-1973) paintings would be shown as

Correct Answer: C) A vertical line.

7. If there is a shortage, what will price do?

Correct Answer: A) Price will increase.

8. The phrase means that quantity demanded varies inversely with price.

Correct Answer: B) Law of demand.

9. Which is an example of the substitution effect?

Correct Answer: B) When the price of pencils goes up, people will buy pens instead.

10. When prices rise, which of the following happens to income

Correct Answer: A) It buys less.

11. Graphically, a change in the quantity demanded is represented by?

Correct Answer: C) From one point to another point along the same demand curve.

12. If the price for peanut butter would go up, the demand for jelly would .....

Correct Answer: B) Decrease.

13. What is the relationship between the Price and Quantity Demanded?

Correct Answer: C) Inverse Relationship.

14. ..... describes the decreasing satisfaction a consumer receives with the purchase of each additional unit

Correct Answer: B) Diminishing marginal utility.

15. If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

Correct Answer: A) A normal good.

16. If a demand curve is VERTICAL, then own-price elasticity of demand for this good is equal to:

Correct Answer: B) Zero.

17. Describes very little a change in demand with a large change in price

Correct Answer: B) Inelastic.

18. Consider the market for SUVs. If the price of gasoline increases then the Demand for these vehicles will

Correct Answer: B) Decrease.

19. Which of the following will cause an increase in quantity demanded for Playstation 4's?

Correct Answer: A) Decrease in price.

20. Which are two types of GOODS?

Correct Answer: A) Normal and Inferior goods.