This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The discovery of a major new offshore oil deposit would result in A) A movement upwards along the supply curve for oil. B) A movement downwards along the supply curve for oil. C) A shift to the right to a new supply curve for oil. D) A shift to the left to a new supply curve for oil. Show Answer Correct Answer: C) A shift to the right to a new supply curve for oil. 2. An increase in demand will shift the demand curve ..... A) Right. B) Left. C) No movement. D) No change. Show Answer Correct Answer: A) Right. 3. Prices for common fruits tend to be elastic. Why? A) Because other fruits are available. B) Because fruits cannot be substituted. C) Because fruits are inexpensive. D) Because fruits are expensive. Show Answer Correct Answer: A) Because other fruits are available. 4. Auto workers agree to wage cuts. A) Supply shifts left. B) Supply shifts right. C) No change in supply. D) None of above. Show Answer Correct Answer: B) Supply shifts right. 5. The demand for a good is ..... when a small change in price causes a large change in the quantity demanded. A) Elastic. B) Inelastic. C) Related. D) Substituted. Show Answer Correct Answer: A) Elastic. 6. Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certainty that the equilibrium: A) Price will decrease. B) Price will increase. C) Quantity will increase. D) Quantity will decrease. Show Answer Correct Answer: D) Quantity will decrease. 7. When you are hungry, you receive the most satisfaction from the first apple and less satisfaction from each additional apple. What explains this? A) Income effect. B) Substitution effect. C) Law of diminishing marginal utility. D) Law of elasticity of demand. Show Answer Correct Answer: C) Law of diminishing marginal utility. 8. Megan Markle is seen wearing a beautiful new H and M dress. What would happen to overall demand for H and M clothing? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Increase. 9. The Black Plague strikes the citizens of Clarkville. What happens to the market for applesauce in Clarkville? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: B) Demand decreases. 10. If Lebron James says that Reese's Cups are really bad for you, what will happen to demand for Resse's cups? A) Go down. B) Go up. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Go down. 11. In the Market for TV's, a new technology is used to increase the production of TVs. What happens? A) Demand will increase. B) Demand will decrease. C) Supply will increase. D) Supply will decrease. Show Answer Correct Answer: C) Supply will increase. 12. Which of the following would happen to the demand for a product if its price goes up? A) The demand for the product falls. B) Nothing happens to the product's demand. C) The demand becomes more inelastic. D) The demand for the product rises. Show Answer Correct Answer: A) The demand for the product falls. 13. The Picture that is created from the information in a demand schedule. A) Utility. B) Income effect. C) Demand curve. D) None of above. Show Answer Correct Answer: C) Demand curve. 14. Would there be a shortage or surplus of housing if the government puts a ceiling on the cost of low income housing? A) Surplus. B) Shortage. C) It would not affect the price. D) None of above. Show Answer Correct Answer: B) Shortage. 15. The demand curve for a normal good shifts leftward if income ..... or the expected future price ..... A) Decreases; falls. B) Increases; rises. C) Increases; falls. D) Decreases; rises. Show Answer Correct Answer: A) Decreases; falls. 16. A contraction in the supply of beef is most likely to be caused by A) A decrease in the price of pork. B) Drought conditions in cattle grazing areas. C) A decrease in the price of beef. D) A tax placed on the production of beef. Show Answer Correct Answer: C) A decrease in the price of beef. 17. You would refer to a(n) ..... which shows the quantities demanded at each price by all customers in the market. A) Demand Schedule. B) Market Demand Schedule. C) Normal Good. D) Income Effect. Show Answer Correct Answer: B) Market Demand Schedule. 18. The income & substitution effects account for A) The upward sloping supply curve. B) The downward sloping demand curve. C) Movements along a given supply curve. D) The "other things equal" assumption. Show Answer Correct Answer: B) The downward sloping demand curve. 19. If there is an increase in demand, the line will shift to the A) Right. B) Left. C) Bottom. D) Up. Show Answer Correct Answer: A) Right. 20. When the price of a good increases, the quantity demanded A) Increases. B) Decreases. C) Remains unchanged. D) Reverses. Show Answer Correct Answer: B) Decreases. ← PreviousNext →Related QuizzesMicroeconomics QuizzesDemand Quiz 1Demand Quiz 2Demand Quiz 4Demand Quiz 5Demand Quiz 6Demand Quiz 7Demand Quiz 8Demand Quiz 9Demand Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books