This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 35 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Demand can be changed by A) Consumer taste. B) Productivity. C) The number of products. D) The number of competition. Show Answer Correct Answer: A) Consumer taste. 2. Command economy is A) Income determined. B) Demand. C) Supply. D) None of above. Show Answer Correct Answer: A) Income determined. 3. Demine supply A) The quantity of a good or service that producers are willing and able to offer for sale at each possible price during a given time period. B) Quantity demanded increases. C) None the the above. D) None of above. Show Answer Correct Answer: A) The quantity of a good or service that producers are willing and able to offer for sale at each possible price during a given time period. 4. What determines how a change in price will affect total revenue for a company? A) Elasticity of Demand. B) The company's pricing policy. C) Values of Elasticity. D) The Consumer's Incomes. Show Answer Correct Answer: A) Elasticity of Demand. 5. The government passes a personal-income tax cut (i.e., the tax cut is for individuals, not businesses). What happens to the market for shoes? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: A) Demand increases. 6. Technology used to make cars improves. This will cause.. A) Supply to Increase. B) Demand to increase. C) Supply to Decrease. D) Demand to Decrease. Show Answer Correct Answer: A) Supply to Increase. 7. The additional expense of producing one more unit of a product is called A) Marginal cost. B) Marginal labor. C) Marginal product. D) Marginal revenue. Show Answer Correct Answer: A) Marginal cost. 8. Products that compete with one another are called: A) Substitute goods. B) Complimentary goods. C) Resources. D) None of above. Show Answer Correct Answer: A) Substitute goods. 9. When the percentage change in quantity demanded is more than the percentage change in price, the elasticity of demand is ..... A) Perfectly elastic. B) Perfectly inelastic. C) Elastic. D) Inelastic. Show Answer Correct Answer: C) Elastic. 10. The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a ..... decrease in the quantity demanded. A) 10 percent. B) 50 percent. C) 2 percent. D) 5 percent. Show Answer Correct Answer: B) 50 percent. 11. According the the law of demand, when price increases, the quantity demanded decreases. This shows that there is a(n) ..... relationship. A) Inverse. B) Converse. C) Similar. D) Concurrent. Show Answer Correct Answer: A) Inverse. 12. When you become "richer" or "poorer" with a change in the prices of products. A) Income effect. B) Substitution effect. C) Diminishing marginal utility. D) None of above. Show Answer Correct Answer: A) Income effect. 13. Suppliers often reduce prices in an because they A) Have a shortage of products to sell. B) Have a surplus of products to sell. C) Want to decrease consumer demand. D) Want to increase the product supply. Show Answer Correct Answer: B) Have a surplus of products to sell. 14. A change in the price of a good causes people to buy more or less of an item. This best describes the concept of A) The demand curve. B) Change in quantity demanded. C) Change in demand. D) Elasticity. Show Answer Correct Answer: B) Change in quantity demanded. 15. All of the following must exist for there to be demand EXCEPT A) A desire to buy a product. B) Producers to sell a product. C) An ability to buy a product. D) A willingness to buy a product. Show Answer Correct Answer: B) Producers to sell a product. 16. If there is a decrease in demand, the graph will shift to the A) Right. B) Left. C) Up. D) Down. Show Answer Correct Answer: B) Left. 17. What is the pricing strategy called that has price tags end in .95 or .99? A) Promotional pricing. B) Flexible pricing policy. C) Odd-number pricing. D) Psychological pricing. Show Answer Correct Answer: D) Psychological pricing. 18. Advertising, fashion trends, and new product introductions serve to A) Create consumer needs. B) Increase income effectiveness. C) Create consumer demand. D) Minimize the income effect. Show Answer Correct Answer: C) Create consumer demand. 19. Which of the following illustrates the concept of diminishing marginal utility? A) Fred keeps buying cars. B) Fred stops buying cars. C) Fred doesn't like the last car he bought. D) Fred receives less enjoyment from his 5th car than his 4th. Show Answer Correct Answer: D) Fred receives less enjoyment from his 5th car than his 4th. 20. Rumors fly that your favorite music artist may retire at the end of the year. What happens to the market for concert tickets for this artist? A) Demand increases. B) Demand decreases. C) Supply increases. D) Supply decreases. Show Answer Correct Answer: A) Demand increases. ← 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