Demand Quiz 14 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Irrespective of price, Sofia always spends Rs. 100 a week on ice cream, we conclude that:

Correct Answer: B) Elasticity of demand is 1.

2. A demand curve is created from a .....

Correct Answer: D) Demand schedule.

3. Someone who makes a product to sell is a .....

Correct Answer: C) Producer.

4. Consumers used to love Outback, now they love Longhorn. Demand for Longhorn would ..... and the demand curve would shift .....

Correct Answer: A) Increase, right.

5. Which factor does NOT create a shift in the demand curve

Correct Answer: A) Price.

6. Which is NOT a factor that affects Elasticity?

Correct Answer: A) Income.

7. Which of the following will cause an increase in demand for Iphones?

Correct Answer: C) Increase in consumer income.

8. A decrease in the price of tylenol is likely to be paired with a(n) ..... in the demand for Aspirin because the two goods are .....

Correct Answer: D) Decrease; substitutes.

9. If the price of pizza rises, then you will buy other things like sandwiches or salads. This is an example of the ..... effect.

Correct Answer: D) Substitute.

10. Pattern of behavior that occurs when consumers react to change in the price of a good or service by buying a substitute product.

Correct Answer: D) Substitute Effect.

11. How many goods are in production possibilities

Correct Answer: A) 2.

12. The change in quantity demanded because of the change in a relative price of the product.

Correct Answer: C) Substitution effect.

13. A change in demand results from a

Correct Answer: B) Change in non-price factors.

14. Demand for a commodity refers to:

Correct Answer: C) Amount of the commodity demanded at a particular price and at a particular time.

15. The law of demand states there is a ..... relationship between the price and the quantity bought

Correct Answer: A) Inverse.

16. How responsive consumers are to price changes in the marketplace.

Correct Answer: D) Elasticity of Demand.

17. Which of the following best describes the Law of Demand?

Correct Answer: B) As price goes down, demand expands (and vice versa).

18. As you eat Halloween candy, over time each additional piece of candy is less satisfying, this is because of

Correct Answer: A) Diminishing marginal utility.

19. When the percentage change in price and quantity demanded are the same.

Correct Answer: B) Unit Elastic.

20. The way that a change in price determines whether or not consumers buy goods

Correct Answer: C) Law of demand.