This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 34 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Law of Demand says that price and quantity have a(n) A) Direct relationship. B) Inverse relationship. C) Marginal utility. D) Diminishing utility. Show Answer Correct Answer: B) Inverse relationship. 2. A gallon of paint and a paint brush would be examples of: A) Independent goods. B) Complementary goods. C) Substitute goods. D) None of above. Show Answer Correct Answer: B) Complementary goods. 3. Which of the following pairs is an example of substitutes? A) Cereal and Milk. B) Calculators and iPods. C) Gatorade and Powerade. D) Water skiing and skateboarding. Show Answer Correct Answer: C) Gatorade and Powerade. 4. The law of demand argues that as prices for a good or service goes down then- A) Demand for those goods or services will go down. B) Demand for those goods or services will go up. C) The demand for those goods or services will stay the same. D) The company will shut down. Show Answer Correct Answer: B) Demand for those goods or services will go up. 5. Supply depends on the willingness and ability of A) Donors to contribute. B) Advertisers to promote. C) Producers to sell. D) Consumers to purchase. Show Answer Correct Answer: C) Producers to sell. 6. Change in quantity demanded because of a change in price that alters consumers' real income. A) Marginal utility. B) Diminishing marginal utility. C) Substitution effect. D) Income effect. Show Answer Correct Answer: D) Income effect. 7. Why does demand generally become more elastic over time? A) People don't change their shopping behavior over time. B) Few substitutes become available. C) People buy more products over time. D) People have time to find substitutes and change behaviors. Show Answer Correct Answer: D) People have time to find substitutes and change behaviors. 8. The non-price factors that shift the demand curve to the right or left. A) Determinants of demand (TIMER). B) Demand elasticity. C) Demand. D) None of above. Show Answer Correct Answer: A) Determinants of demand (TIMER). 9. This part of the market determines DEMAND A) Buyers. B) Sellers. C) Suppliers. D) Store owners. Show Answer Correct Answer: A) Buyers. 10. The effect that increasing or decreasing prices has on the buying power of a person is better known as ..... A) Income Effect. B) Substitution Effect. C) Diminishing Marginal Returns. D) Inflation. Show Answer Correct Answer: A) Income Effect. 11. What would change the quantity demanded? A) Your market campaign was a success. B) The supplies become more expensive. C) The economy is experiencing a recession. D) The price increases. Show Answer Correct Answer: D) The price increases. 12. Definition of Marginal Utility A) The satisfaction from consumption. B) To total satisfaction from consuming a product. C) The extra satisfaction from the last unit consumed. D) The extra consumption from last unit consumed. Show Answer Correct Answer: C) The extra satisfaction from the last unit consumed. 13. Which of these is neither a good nor a service? A) A gallon of gasoline. B) A piano lesson. C) A meal at a restaurant. D) A $ 20 bill. Show Answer Correct Answer: D) A $ 20 bill. 14. When the price of Product A increases, the quantity demanded for Product A ..... ? A) Decreases. B) Reverses. C) Increases. D) Remains the same. Show Answer Correct Answer: A) Decreases. 15. A decrease in the quantity supplied is represented by a A) Rightward shift in the supply curve. B) Movement down the supply curve. C) Leftward shift in the supply curve. D) Movement up the supply curve. Show Answer Correct Answer: B) Movement down the supply curve. 16. Inferior goods are those for which demand increases as A) Income decreases. B) Income increases. C) The price of a substitute rises. D) The price of a substitute falls. Show Answer Correct Answer: A) Income decreases. 17. An economist would probably state that in a market economy, prices are generally determined by the interaction between A) Buyers and sellers. B) Wholesalers and retailers. C) Producers and labor unions. D) Consumers and government officials. Show Answer Correct Answer: A) Buyers and sellers. 18. A surplus happens when A) Prices are too low relative to consumer demand. B) Prices are too high relative to consumer demand. C) Prices are too low relative to producer demand. D) Prices are too high relative to producer demand. Show Answer Correct Answer: B) Prices are too high relative to consumer demand. 19. A shift to the right of the demand results in an A) Decrease in demand. B) Contraction in demand. C) Expansion in demand. D) Increase in quantity demanded. Show Answer Correct Answer: D) Increase in quantity demanded. 20. This determinant of demand describes the tendency of consumers to exchange a similar, lower-priced product for another product that is relatively more expensive. A) Income Effect. B) Substitution Effect. C) Complimentary Effet. D) Market Size. Show Answer Correct Answer: B) Substitution Effect. ← 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