This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following would cause a change in the quantity demanded for a product? A) Changing consumer tastes. B) Increasing consumer income. C) Decreasing price of product. D) Changing prices of related products. Show Answer Correct Answer: C) Decreasing price of product. 2. Which of the following would cause a change in supply? A) A change in market price. B) A change in technology available. C) A change in the number of sellers. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Producers are willing to sell more of a good or service at a higher price than they are at a lower price A) Law of Supply. B) Law of Demand. C) Demand. D) Inelastic. Show Answer Correct Answer: A) Law of Supply. 4. Which of the following is characteristic of the expansion phase of the business cycle? A) Less discretionary income. B) Decreased competition. C) Increased consumer demand. D) Growing unemployment. Show Answer Correct Answer: C) Increased consumer demand. 5. There is a sale on Big Mac's at McDonald's. What would happen to overall demand for fries at McDonald's? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Increase. 6. Costs business owners incur no matter how much they produce A) Privatize. B) Fixed Costs. C) Variable Costs. D) Total Costs. Show Answer Correct Answer: B) Fixed Costs. 7. Which factor causes the demand curve to shift in the following situation:Bobby graduated from college and got a good job, so he decided to buy a new Lexus. A) Income. B) Population. C) Consumer tastes & advertising. D) Prices of related goods. Show Answer Correct Answer: A) Income. 8. If price of tea decreases, what is the affect on the demand for coffee? A) The demand for tea is not affected. B) The demand for coffee decreases. C) The demand for tea decreases. D) The demand for coffee increases. Show Answer Correct Answer: B) The demand for coffee decreases. 9. Which of the following does NOT shift the supply curve? A) An increase in the price of the good. B) A fall in the price of a substitute in production. C) A decrease in the wages of labor used in production of the good. D) A technological advance. Show Answer Correct Answer: A) An increase in the price of the good. 10. The term that means a small increase in a good's price causes a large change in quantity demanded. A) Elastic demand. B) Diminishing marginal utility. C) Inelastic demand. D) None of above. Show Answer Correct Answer: A) Elastic demand. 11. What goes on the horizontal axis of a demand graph? A) Price. B) Quantity demanded. C) Quantity supplied. D) Change in demand. Show Answer Correct Answer: B) Quantity demanded. 12. What kind of table lists the quantity of a good that a person will buy at different prices? A) Market demand curve. B) Market demand schedule. C) Demand schedule. D) Demand curve. Show Answer Correct Answer: C) Demand schedule. 13. Occurs when related businesses conspire to charge high prices. A) Markup. B) Price fixing. C) Scarcity. D) Price lines. Show Answer Correct Answer: B) Price fixing. 14. When quantity supplied exceeds quantity demanded at a certain price. A) Shortage. B) Fad. C) Search costs. D) Surplus. Show Answer Correct Answer: D) Surplus. 15. If there is a decrease in demand, the demand curve will shift to the A) Right. B) Left. C) Up. D) Down. Show Answer Correct Answer: B) Left. 16. The amount that is added to the cost of a product or service to cover operating expenses and to allow for a profit. A) Inflation. B) Markup. C) Price fixing. D) Equilibrium. Show Answer Correct Answer: B) Markup. 17. On a demand curve, a change in quantity demanded is represented by A) A shift to the left. B) A shift to the right. C) A movement along the curve. D) None of above. Show Answer Correct Answer: C) A movement along the curve. 18. If price of Powerade decreases, what is the affect on the demand for Gatorade? A) The demand for Powerade is not affected. B) The demand for Gatorade decreases. C) The demand for Powerade decreases. D) The demand for Gatorade increases. Show Answer Correct Answer: B) The demand for Gatorade decreases. 19. The ..... is the change in the amount that consumers will buy because the purchasing power of their income changes. A) Income effect. B) Substitution effect. C) Complement. D) Substitute. Show Answer Correct Answer: A) Income effect. 20. Total Utility will be greatest when marginal utility equals A) 0. B) 1. C) 2. D) 3. Show Answer Correct Answer: A) 0. ← 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