Demand Quiz 29 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Determinants of demand include income, expectations, taste, and .....

Correct Answer: A) Consumer Preference.

2. What would cause the demand to move along the demand curve instead of shifting it right or left?

Correct Answer: A) Price.

3. Hot dogs and hot dog buns are typically purchased together. Economists would call these

Correct Answer: B) Complements.

4. If the government set a limit on the cost of baseball bats, this action would be called

Correct Answer: C) Setting a price ceiling.

5. A normal good

Correct Answer: C) Will be in higher demand if a person's income increases.

6. Price goes on .....

Correct Answer: A) The vertical axis.

7. The number of potential buyers of a product.

Correct Answer: B) Market size.

8. The resource that includes equipment, machinery, buildings, and tools.

Correct Answer: C) Capital.

9. This is illustrated by movement along the demand curve

Correct Answer: B) Change in quantity demanded.

10. Extension of demand is affected by

Correct Answer: A) Price.

11. The following are causes of shift in demand EXCEPT the one:

Correct Answer: B) Change in price.

12. What is meant by Autarky in international trade?

Correct Answer: D) The idea of self sufficiency and no international trade by a country.

13. Goods that consumers demand less of when their incomes rise.

Correct Answer: A) Inferior Goods.

14. All of the following will cause a shift of the demand curve for a good except

Correct Answer: B) A change in the price of the good.

15. When consumers react to an increase in a good's price by consuming less of that good and more of other goods.

Correct Answer: C) Substitution Effect.

16. If the price elasticity of a demand is less than one it means it is

Correct Answer: A) Inelastic.

17. Peanut butter becomes more expensive. What happens to the market for jelly?

Correct Answer: B) Demand decreases.

18. Suppose that elasticity of demand of socks is 0.7. If the price of socks is reduced by 10%, how will sales be effected?

Correct Answer: C) Sales will grow by less than 10%.

19. The demand curve always slopes

Correct Answer: A) Down and to the right.

20. If LeBron James did advertisements for Nike shoes, this would cause the ..... curve for Nike shoes to shift .....

Correct Answer: A) Demand right.