This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 21 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Demand for a product is said to be ..... when a change in price causes very little change in quantity demanded. A) Elastic. B) Inelastic. C) Related. D) Rigid. Show Answer Correct Answer: B) Inelastic. 2. When consumers make more or less money, this changes demand because of A) Income effect. B) Consumer tastes. C) Substitution effect. D) Complements. Show Answer Correct Answer: A) Income effect. 3. A change in price, other things constant, causes a ..... a demand curve. A) Movement along. B) Shift of. C) Substitutes of. D) None of these. Show Answer Correct Answer: A) Movement along. 4. Which would an economist consider a likely substitute for roller-skates? A) Skate board. B) Jump rope. C) Side walk chalk. D) Video game. Show Answer Correct Answer: A) Skate board. 5. Going to the Dallas Farmers Market to buy apples, you will find this type of market structure. A) Monopoly. B) Perfect Competition. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: B) Perfect Competition. 6. Which of the following will cause a decrease in quantity demanded for Ford trucks? A) Increase in price. B) Decrease in price. C) Decrease in market size. D) None of above. Show Answer Correct Answer: A) Increase in price. 7. How would a decline in income affect the demand for air travel? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: B) Decrease. 8. Where do you find price equilibrium? A) Where a supply curve and demand curve intersect. B) Where the supply curve is greater than the demand curve. C) Where the demand curve is greater than the supply curve. D) At the price floor. Show Answer Correct Answer: A) Where a supply curve and demand curve intersect. 9. In a competitive market, equilibrium price will fall when A) Demand and supply both increase. B) Demand remains constant and supply decreases. C) Supply increases proportionally more than demand increases. D) Supply remains constant and there is a expansion in demand. Show Answer Correct Answer: C) Supply increases proportionally more than demand increases. 10. Equilibrium in a market means which of the following? A) The point at which quantity supplied and quantity demanded are the same and a price point is set. B) The point at which unsold goods begin to pile up. C) The point at which suppliers begin to sell supplies. D) None of above. Show Answer Correct Answer: A) The point at which quantity supplied and quantity demanded are the same and a price point is set. 11. The additional cost of producing one more unit of their product A) Fixed Costs. B) Variable Costs. C) Total Costs. D) Marginal Costs. Show Answer Correct Answer: D) Marginal Costs. 12. Which of the following is NOT a demand shifter? A) Normal Goods. B) Market Size. C) Price Expectations. D) Input Price. Show Answer Correct Answer: D) Input Price. 13. An effective price floor must be set above equilibrium, resulting in: A) A shortage. B) A surplus. C) Limited choices. D) None of the above. Show Answer Correct Answer: B) A surplus. 14. On a demand curve, movement along the curve, as opposed to a shift in the entire curve, is a result of ..... A) A change in price. B) An increase in demand. C) A decrease in demand. D) A change in demand. Show Answer Correct Answer: A) A change in price. 15. Which of the following is NOT an example of complement goods? A) Football jersey and shoulder pads. B) IPod and iPad. C) Bicycle and helmet. D) Computer and charging cord. Show Answer Correct Answer: B) IPod and iPad. 16. Which best represents the "law of demand" ? A) The desire to own something and the ability to pay for it. B) When price goes up quantity demanded goes down. C) When price goes up quantity supplied goes up. D) When price goes down quantity demanded goes down. Show Answer Correct Answer: B) When price goes up quantity demanded goes down. 17. The law of demand is as price goes up supply A) Goes down. B) Goes up. C) Is unaffected. D) None of above. Show Answer Correct Answer: A) Goes down. 18. If elasticity of demand is very low it shows that the commodity is: A) A necessity. B) A luxury. C) Has little importance in total budget. D) (a) and (c) above. Show Answer Correct Answer: A) A necessity. 19. In the equation for elasticity of supply, when the numerator is larger than the denominator, we know that A) Supply is not very responsive to price change. B) Supply is unit-elastic. C) Supply is inelastic. D) Supply is elastic. Show Answer Correct Answer: D) Supply is elastic. 20. What is the relationship between income and demand? A) Decrease in income increases demand. B) Decrease in price decreases income. C) An increase in price increases income. D) An increase in income increases demand. Show Answer Correct Answer: D) An increase in income increases demand. ← 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