This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is generally true after a shift in supply or demand? A) Supply rises along with demand. B) Demand fall as prices rise. C) Equilibrium is gradually restored. D) Equilibrium price moves down the demand curve. Show Answer Correct Answer: C) Equilibrium is gradually restored. 2. Elasticity, in economic terms, is another word for A) Adaptability. B) Adjustment. C) Responsiveness. D) Reconciliation. Show Answer Correct Answer: C) Responsiveness. 3. Which of the following terms describes the primary objective of any business? A) Demand. B) Profit. C) Supply. D) Money. Show Answer Correct Answer: B) Profit. 4. If the price elasticity of a demand is greater than one it means it is A) Inelastic. B) Elastic. C) Unitary elastic. D) A steal. Show Answer Correct Answer: B) Elastic. 5. If the number of people living in Immokalee decreases in 2021, demand for products will ..... and the demand curve will shift to the ..... A) Decrease, left. B) Increase, left. C) Decrease, right. D) Increase, right. Show Answer Correct Answer: A) Decrease, left. 6. Consumers demand based on what they think will happen in the future. A) Expectations. B) Diminishing marginal utility. C) Substitutes. D) Complements. Show Answer Correct Answer: A) Expectations. 7. How does competition affect producers in a market economy? A) They generally agree to share resources equally. B) They improve the quality of their goods to attract buyers. C) They look to the government to assign resources. D) They ration their goods equally among consumers. Show Answer Correct Answer: B) They improve the quality of their goods to attract buyers. 8. A change in one of the determinants of demand will cause ..... A) The entire demand curve to shift either to the right or the left. B) The demand curve to get shorter. C) No change in the demand curve. D) A change in the price of the good offered. Show Answer Correct Answer: A) The entire demand curve to shift either to the right or the left. 9. Economists use a supply curve to A) Show the law of supply in chart form. B) Show the law of supply in graph form. C) Show the law of supply in table form. D) Show the law of supply in a written description. Show Answer Correct Answer: B) Show the law of supply in graph form. 10. Suppose that a 2% increase in price results in a 6% decrease in quantity demanded. Own-price elasticity of demand is equal to: A) 1/3. B) 6. . C) 2 . D) 3. Show Answer Correct Answer: D) 3. 11. The tendency for the price and quantity demanded to move in opposite directions is known as A) A demand curve. B) A demand schedule. C) The law of demand. D) The quantity demanded. Show Answer Correct Answer: C) The law of demand. 12. The percentage change in quantity demanded divided by the percentage change in price is a rough measure of a good's: A) Supply elasticity of price. B) Price elasticity of supply. C) Demand elasticity of price. D) Price elasticity of demand. Show Answer Correct Answer: D) Price elasticity of demand. 13. If Mary used to buy 10 units at $ 4 each and now buys 15 units when the price is $ 4, her A) Quantity demanded has increased. B) Quantity demanded has decreased. C) Demand has increased. D) Demand has decreased. Show Answer Correct Answer: C) Demand has increased. 14. In case of a straight line demand curve meeting the two axes, the price elasticity of demand at the mid-point of the line would be: A) 0. B) 1. C) 1.5. D) 2. Show Answer Correct Answer: B) 1. 15. ITunes increases the price of all of its digital downloadable music to $ 6 per song. What causes this change? A) Prices or availability of substitutes. B) Prices or availability of complementary goods. C) Change in the weather or season. D) Change in the number of buyers. Show Answer Correct Answer: A) Prices or availability of substitutes. 16. The market equilibrium price is the price at which A) Surpluses depress the number of goods supplied. B) Shortages and surpluses will have no effect on the market. C) The government will not intervene in the market. D) The quantity demanded is the same as the quantity supplied. Show Answer Correct Answer: D) The quantity demanded is the same as the quantity supplied. 17. An increase in the price of aspirin is likely to be paired with a(n) ..... in the demand for Tylenol because the two goods are ..... A) Increase; complements. B) Increase; substitutes. C) Decrease; complements. D) Decrease; substitutes. Show Answer Correct Answer: B) Increase; substitutes. 18. When there is a shortage, producers raise prices in an attempt to A) Separate the quantity supplied and demanded. B) Raise the quantity demanded. C) Equalize the quantity supplied and demanded. D) Lower the quantity supplied. Show Answer Correct Answer: C) Equalize the quantity supplied and demanded. 19. Income elasticity of demand is defined as the responsiveness of: A) Quantity demanded to a change in income. B) Quantity demanded to a change in price. C) Price to a change in income. D) Income to a change in quantity demanded. Show Answer Correct Answer: A) Quantity demanded to a change in income. 20. Coca-Cola announces it will stop producing those iconic glass Coke bottles next month and go all aluminum. What happens to the market for glass bottles of Coke? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: A) Demand increases. ← 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