Demand Quiz 20 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. ..... is a company's income from selling its products.

Correct Answer: A) Total Revenue.

2. The quantity demanded is the ..... of goods and services purchased at a given price

Correct Answer: A) Number.

3. The supply of a good refers to:

Correct Answer: D) Quantity of the good offered for sale at a particular price per unit of time.

4. Related goods like shoelaces and shoes or cell phones and earbuds is

Correct Answer: C) Complements.

5. What is the income effect?

Correct Answer: B) When consumers can buy more if their income goes up.

6. Define supply curve

Correct Answer: A) When price increases, the quantity supplied increases, and when price decreases, the quantity supplied decreases.

7. When a consumer is able and willing to buy a good or service, he/she creates what?

Correct Answer: B) Demand.

8. Occurs when prices for goods and services rise faster than consumer income

Correct Answer: B) Inflation.

9. All of the following are determinants of demand except .....

Correct Answer: B) Number of suppliers.

10. A tornado passes through Indianapolis, destroying many people's houses. What happens to the market for steak from St. Elmo's?

Correct Answer: B) Demand decreases.

11. Distinct categories of merchandise based on price, quality, and features

Correct Answer: B) Price lines.

12. It's winter. What happens to the market for trips to Disneyland?

Correct Answer: B) Demand decreases.

13. How would a decline in the price of cellular service affect the demand for cell phones?

Correct Answer: A) Increase.

14. Which of the following would cause the demand curve for Product A to shift to the left?

Correct Answer: A) Price of a substitute good, Product B, decreases.

15. When prices go up

Correct Answer: B) Demand goes down.

16. Consumers expect gasoline prices will rise, what will happen to the demand for gas?

Correct Answer: A) Increase.

17. When quantity supplied is smaller than quantity demanded, you have a .....

Correct Answer: A) Shortage.

18. What would not cause a change (shift) in the demand curve?

Correct Answer: C) A change in price of the good.

19. An increase in Consumer income will cause the demand for Spam (inferior good) to:

Correct Answer: B) Decrease.

20. For diabetics, insulin has inelastic demand because

Correct Answer: A) It is a necessity.