This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 18 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the willingness to buy a good or service and the ability to pay for it? A) Supply. B) Demand. C) Economics. D) Socialism. Show Answer Correct Answer: B) Demand. 2. Consumer equilibrium occurs when ..... A) They have spent all of their income. B) A person consumes quantities of three goods. C) A person consumes quantities of two goods. D) Satisfaction is maximised for a given level of income. Show Answer Correct Answer: D) Satisfaction is maximised for a given level of income. 3. Cost push inflation occurs because of: A) Wage push. B) Profit push. C) Both A and B. D) Ineffective policies of the government. Show Answer Correct Answer: C) Both A and B. 4. Market equilibrium exists when A) There is no shortage or surplus in a competitive market. B) Quantity supplied equals quantity demanded in a competitive market. C) There is no tendency for market price to rise or fall. D) All of the above conditions are achieved. Show Answer Correct Answer: D) All of the above conditions are achieved. 5. Which one of the following alternatives is an example of a market? A) All of the answers. B) The New York Stock Exchange. C) A website where freelancers can propose their services and companies can hire them. D) A place in your town where you can buy fruit. Show Answer Correct Answer: A) All of the answers. 6. Define law of supply A) As the price of a good or service rises, the quantity supplied of that good or service rises. Likewise, as the price of a good or service falls, the quantity supplied of that good or service falls. B) Demand. C) Income. D) None of above. Show Answer Correct Answer: A) As the price of a good or service rises, the quantity supplied of that good or service rises. Likewise, as the price of a good or service falls, the quantity supplied of that good or service falls. 7. A change in quantity demanded is represented by ..... A) Movement along the demand curve. B) Subsitution. C) A shift of the demand curve. D) Complements. Show Answer Correct Answer: A) Movement along the demand curve. 8. How would a decline in the birthrate affect the demand for baby clothes? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: B) Decrease. 9. Which of the following is an example of substitutes? A) Butter & margarine. B) Computers & software. C) Flashlights & batteries. D) IPhones & earbuds. Show Answer Correct Answer: A) Butter & margarine. 10. Extra usefulness, or additional satisfaction a person gets from acquiring or using one more unit of a product. A) Marginal utility. B) Diminishing marginal utility. C) Demand economics. D) Supply economics. Show Answer Correct Answer: A) Marginal utility. 11. Cardi B is trending. What happens to her music? A) Increase Supply. B) Decrease Supply. C) Increase Demand. D) Decrease Demand. Show Answer Correct Answer: C) Increase Demand. 12. The supply curve slopes ..... A) Up and to the right. B) Up and to the left. C) Down and to the right. D) Down and to the left. Show Answer Correct Answer: A) Up and to the right. 13. What factor has the greatest influence on elasticity and inelasticity of supply? A) Time or price. B) Demand. C) All of the above. D) None of above. Show Answer Correct Answer: A) Time or price. 14. Higher per-unit production costs would cause producers to A) Wait and produce more. B) Hire more workers. C) Supply more. D) Supply less. Show Answer Correct Answer: A) Wait and produce more. 15. The price of hot-dogs increase by 22% and the quantity demanded falls by 25% this indicates that demand for hot dogs is: A) Elastic. B) Inelastic. C) Unitary elastic. D) Perfectly elastic. Show Answer Correct Answer: A) Elastic. 16. The demand for "necessities" like electricity tend to be: A) Elastic. B) Inelastic. C) Neither. D) None of above. Show Answer Correct Answer: B) Inelastic. 17. Commodity having inelastic demand is: ..... A) Medicine. B) Pen. C) Cloth. D) Car. Show Answer Correct Answer: A) Medicine. 18. An oil refinery fire could cause the price of gas to ..... A) Increase. B) Decrease. C) Stabilize. D) Fluctuate wildly. Show Answer Correct Answer: A) Increase. 19. Lower prices generally A) Discourage consumers from seeking a substitute. B) Discourage producers from leaving a market. C) Motivate consumers to buy. D) Motivate producers to enter the market. Show Answer Correct Answer: C) Motivate consumers to buy. 20. If suddenly, a large population increase occurred, what impact would it have on the housing market? A) Prices would remain constant. B) There would be a surplus of homes on the market. C) It would shift the demand curve to the left. D) It would shift the demand curve to the right. Show Answer Correct Answer: D) It would shift the demand curve to the right. ← 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