Demand Quiz 6 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. What might serve as an incentive for a business to begin to supply a certain good?

Correct Answer: C) A high price for that good.

2. The desire, ability, and willingness to buy a product is know as .....

Correct Answer: D) Demand.

3. An increase in the price of cameras results in a decrease in the demand for film. The two products are

Correct Answer: D) Complements.

4. Demand means

Correct Answer: A) The amount of a good or service that consumers are willing to buy.

5. If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:

Correct Answer: A) Increase.

6. A ..... ..... keeps prices form going any higher and causes a .....

Correct Answer: A) Price ceiling; shortage.

7. An increase in demand can result from:

Correct Answer: B) An increase in income.

8. The price of RICE (assume the elasticity is less than 1) has increased by 10%. What is the likely percentage change in quantity demanded?

Correct Answer: B) Fall by 5%.

9. When the price of something increases, the quantity demanded ..... ?

Correct Answer: A) Decreases.

10. An increase in the price of Coca-Cola will cause the demand for Pepsi to:

Correct Answer: A) Increase.

11. A good that is always used with another good

Correct Answer: D) Complement.

12. The law of demand states that the quantity of a good or service demanded by consumers varies:

Correct Answer: B) Inversely with a rise in price.

13. If the cost of inputs increases

Correct Answer: D) Supply decreases.

14. A change in one of the non price factors of demand will cause .....

Correct Answer: A) The entire demand curve to shift either to the right or the left.

15. Which demand shifter is being referred to if the salary or income dictates the change in demand?

Correct Answer: C) Normal Goods.

16. According to the Total Revenue Test for elastic demand, as prices go ....., total revenue goes .....

Correct Answer: C) Up; Down.

17. A PSA is broadcast repeatedly on TV to inform consumers that eggs lower your cholesterol. What happens to the market for eggs?

Correct Answer: A) Demand increases.

18. If the price of a product decreases and the quantity demanded increases what kind of demand is this?

Correct Answer: A) Elastic demand.

19. If there is a surplus, what will price do?

Correct Answer: A) Price will decrease.

20. What is the effect of import restrictions on prices?

Correct Answer: A) They cause prices to rise.