Demand Quiz 4 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. On a curve, an increase in demand causes the demand curve to

Correct Answer: C) Shift to the right.

2. The Law of Demand is measured from the perspective of who(m)?

Correct Answer: C) Consumer.

3. A decrease in quantity demanded caused by an increase in price is represented by a

Correct Answer: A) Movement up and to the left along the demand curve.

4. Elasticity of demand measures how responsive quantity demanded is to a change in

Correct Answer: A) Price.

5. Normal goods are those for which demand decreases as

Correct Answer: D) Income decreases.

6. When the quantity of a good supplied is more than the quantity demanded at the present price.

Correct Answer: B) Surplus.

7. In economics, demand means

Correct Answer: B) Willingness and ability to buy a good.

8. Which of the following would NOT cause a demand curve to shift?

Correct Answer: D) A change in the price of a product.

9. In a market economy, ultimate power rests with

Correct Answer: C) Consumers.

10. In case of Inferior goods like bajra, a fall in its price tends to:

Correct Answer: B) Reduce the demand.

11. Rise and fall in the amount producers offer for sale because of a change in price

Correct Answer: A) Change in quantity supplied.

12. Which of the following pairs could be considered complements?

Correct Answer: C) Bread and Butter.

13. Which of the following is not a factor affecting demand?

Correct Answer: D) Number of sellers.

14. Consumers are willing to buy more at lower prices than higher prices

Correct Answer: A) Law of demand.

15. Demand is the desire and the ..... to buy a product or service

Correct Answer: D) Ability.

16. A complement is a good

Correct Answer: A) Used in conjunction with another good.

17. Which economic concept is defined as the measure of how responsive consumers are to a price change?

Correct Answer: D) Elasticity of demand.

18. What are inferior goods?

Correct Answer: A) A good for which demand decreases when income increases and demand increases when income decreases.

19. If the price of 'X' rises by 10 per cent and the quantity demanded falls by 10 per cent, 'X' has:

Correct Answer: B) Unit elastic demand.

20. When orange juice producers put OJ on sale because they have too much OJ in warehouses, this excess is called:

Correct Answer: C) Surplus.