This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 27 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A change in the demand for apples could result from any of the following except A) A change in the number of buyers. B) Increased preferences for fresh fruit consumption for health reasons. C) A change in the price of an apple. D) A change in the price of a banana. Show Answer Correct Answer: C) A change in the price of an apple. 2. When cross elasticity of demand is a large positive number, one can conclude that: A) The good is normal. B) The good is inferior. C) The good is a substitute. D) The good is a complement. Show Answer Correct Answer: C) The good is a substitute. 3. The horizontal demand curve parallel to x-axis implies that the elasticity of demand is: A) Zero. B) Infinite. C) Equal to one. D) Greater than zero but less than infinity. Show Answer Correct Answer: B) Infinite. 4. Which of the following is an example of prestige pricing? A) Charging wealthy customers higher prices than other customers. B) Charging high prices for status products. C) Negotiating prices at a swap meet. D) Selling a football jersey for $ 19.99. Show Answer Correct Answer: B) Charging high prices for status products. 5. A table that lists the quantity of a good that a single person will buy at each price in a market. A) Demand schedule. B) Market demand schedule. C) Elasticity chart. D) Supply and demand graph. Show Answer Correct Answer: A) Demand schedule. 6. If a bunch of people move into a community, what will happen to demand for some products in that community? A) Go down. B) Go up. C) Stay the same. D) None of above. Show Answer Correct Answer: B) Go up. 7. The USA has mostly a ..... economy. A) Command. B) Traditional. C) Mixed. D) Market. Show Answer Correct Answer: D) Market. 8. Short supply shortage is A) Scarcity. B) Trade off. C) A and B. D) None of above. Show Answer Correct Answer: A) Scarcity. 9. On the market demand and supply graph, the vertical axis shows A) Demand. B) Equilibrium. C) Prices. D) Quantity. Show Answer Correct Answer: C) Prices. 10. A supply curve slopes: A) Upward. B) Downward. C) Vertical. D) Not at All. Show Answer Correct Answer: A) Upward. 11. The related goods of peanut butter and jelly can be classified as: A) Independent goods. B) Substitute goods. C) Complementary goods. D) None of above. Show Answer Correct Answer: C) Complementary goods. 12. On the demand and supply graph, the horizontal axis shows A) Demand. B) Equilibrium. C) Prices. D) Quantity. Show Answer Correct Answer: D) Quantity. 13. As the price of cars decrease, the demand for gasoline: A) Increases. B) Decreases. C) Doesn't change. D) None of above. Show Answer Correct Answer: A) Increases. 14. In which of the following market structure is the degree of control over the price of its product by a firm very large? A) Imperfect competition. B) Perfect competition. C) Monopoly. D) In A and B both. Show Answer Correct Answer: C) Monopoly. 15. If own-price elasticity of demand equals 0.3 in absolute value, then what percentage change in price will result in a 6% decrease in quantity demanded? A) 3%. B) 6%. C) 20%. D) 50%. Show Answer Correct Answer: C) 20%. 16. What effect to the market demand curve is caused by a change in price? A) A shift of the demand curve. B) Movement along the the demand curve. C) Removal of the demand curve. D) Frankly, I really don't know. Show Answer Correct Answer: B) Movement along the the demand curve. 17. The maximum legal price that can be charged is called a A) Price ceiling. B) Price floor. C) Price fan. D) Price stair. Show Answer Correct Answer: A) Price ceiling. 18. Ceteris paribus, or "all other things held constant, " is an assumption that which of the following has effects on a demand schedule? A) Price. B) Rice. C) Both. D) None of above. Show Answer Correct Answer: A) Price. 19. What are the two functions of price? A) Reallocating and signalling. B) Incentive and reallocating. C) Reallocating and measuring. D) Signalling and incentive. Show Answer Correct Answer: D) Signalling and incentive. 20. If no good substitutes are available for a particular product, that product's demand will be A) More elastic. B) Less elastic. C) Perfectly elastic. D) Substitution possibilities do not affect elasticity. Show Answer Correct Answer: B) Less elastic. ← 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