Demand Quiz 28 (20 MCQs)

Quiz Instructions

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1. If the price of a product increases, and the quantity demanded remains the same, what kind of demand is this?

Correct Answer: A) Inelastic demand.

2. The more of a product that you consume, the less satisfaction the consumer enjoys..

Correct Answer: B) Diminishing marginal utility.

3. Which of the following replaces a costly item with a less costly one?

Correct Answer: A) Substitution effect.

4. Which of the following is an example of a good with an inelastic demand

Correct Answer: A) Life-saving medicine.

5. A company's income from selling its product

Correct Answer: A) Total Revenue.

6. Which of the following is NOT a determinant of supply?

Correct Answer: D) Population changes.

7. If a price is below the equilibrium price it creates a .....

Correct Answer: A) Shortage.

8. In case of an inferior good, the income elasticity of demand is:

Correct Answer: C) Negative.

9. Which of the following practices is restricted by law?

Correct Answer: D) All the above.

10. Which is TRUE about the increase of demand?

Correct Answer: B) Shifts to the right.

11. The amount of a good or service a consumer is willing and able to buy at various prices during a given time period.

Correct Answer: C) Demand.

12. The ..... effect occurs when an increase in price decreases a consumer's real income.

Correct Answer: A) Income.

13. The demand for products or services for which there are no substitutes tends to be

Correct Answer: C) Quite inelastic.

14. A substitute is a good

Correct Answer: C) That can be used in place of another good.

15. Congress passes a law that increases taxes by 10%. What would happen to the overall demand for tickets to Fiesta Texas?

Correct Answer: B) Decrease.

16. When the price of steak decreases, the demand for Spam:

Correct Answer: B) Decreases.

17. A general measure of consumer responsiveness to prices, a cause and effect relationship in economics.

Correct Answer: B) Elasticity.

18. Skiers flock to a town in the Rockies in January, and restaurant business booms. What factor is affecting demand?

Correct Answer: B) Market size.

19. If the price for a product rises, then,

Correct Answer: C) Quantity supplied will expand.

20. The surgeon general has just come out with a warning that eating skittles causes cancer. What would happen to the overall demand for skittles?

Correct Answer: A) Decrease.