This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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) 2. B) 2.5. C) ) 3. D) 4. Show Answer Correct Answer: B) 2.5. 2. Most communist countries have a ..... economy. A) Command. B) Market. C) Traditional. D) Mixed. Show Answer Correct Answer: A) Command. 3. 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. 4. Which of the following is NOT held constant while moving along a supply curve? A) Prices of resources used in production. B) Expected future prices. C) The number of sellers. D) The price of the good itself. Show Answer Correct Answer: D) The price of the good itself. 5. 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) Raise the prices of that good. D) Shift production to another good. Show Answer Correct Answer: C) Raise the prices of that good. 6. As we use more of a product, we get less satisfaction from using each additional quantity. A) Marginal utility. B) Diminishing marginal utility. C) Equilibrium. D) Price discrimination. Show Answer Correct Answer: B) Diminishing marginal utility. 7. As prices go up, ..... goes down. A) Supply. B) Demand. C) Utility. D) None of above. Show Answer Correct Answer: B) Demand. 8. 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. 9. 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. 10. If thinking about the future price of a good influences your purchasing, this is caused by A) Framing. B) Price of a related good. C) Expectations. D) Change in taste. Show Answer Correct Answer: C) Expectations. 11. 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. 12. 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. 13. Which of the following would NOT shift the demand curve for turkey? A) A change in tastes for turkey. B) A decrease in the price of ham. C) An increase in income. D) A change in the price of a turkey. Show Answer Correct Answer: D) A change in the price of a turkey. 14. Term for the desire, ability, & willingness to buy a product. A) Complements. B) Microeconomics. C) Utility. D) Demand. Show Answer Correct Answer: D) Demand. 15. 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. 16. 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. 17. The maximum amount that sellers may charge for a good or service is called a A) Maximum wage. B) Minimum wage. C) Price ceiling. D) Price floor. Show Answer Correct Answer: C) Price ceiling. 18. 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. 19. Goods for which demand goes down as income goes up are better known as ..... A) Inferior Goods. B) Normal Goods. C) Public Goods. D) Private Goods. Show Answer Correct Answer: A) Inferior Goods. 20. 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. ← 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