This quiz works best with JavaScript enabled. Home > Microeconomics > Demand > Demand – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The main reason individuals consume goods and services is: A) To increase demand. B) To increase personal satisfaction. C) To drive the economy. D) None of these. Show Answer Correct Answer: B) To increase personal satisfaction. 2. What are products that consumers demand less of when their incomes rise? A) Inferior goods. B) Normal goods. C) Substitute goods. D) Complementary goods. Show Answer Correct Answer: A) Inferior goods. 3. What is a company's total revenue? A) The price of their goods. B) The amount they receive for selling their goods. C) The amount og goods they can expect to sell. D) The amount of profit they can expect to make. Show Answer Correct Answer: B) The amount they receive for selling their goods. 4. Which would an economist consider a likely compliment for hamburgers? A) Mustard and ketchup. B) Hot dog buns. C) An oven. D) Water. Show Answer Correct Answer: A) Mustard and ketchup. 5. Rings are half price, so Jenna buys two. What affected her decision? A) Consumer expectations. B) Consumer tastes. C) Income effect. D) Substitution effect. Show Answer Correct Answer: C) Income effect. 6. The 'law of supply' suggests that A) Price and quantity supplied are directly related. B) Price and quantity supplied are inversely related. C) Movements along the supply curve are caused by a price fall. D) Supply will expand until market equilibrium is reached. Show Answer Correct Answer: A) Price and quantity supplied are directly related. 7. If the price on a product goes up the quantity demanded will go down. This follows the Law of A) Demand. B) Elasticity. C) Supply. D) Utility. Show Answer Correct Answer: A) Demand. 8. Which of the following allows consumers to negotiate prices? A) Psychological pricing. B) Promotional pricing. C) One-price policy. D) Flexible pricing promotion. Show Answer Correct Answer: D) Flexible pricing promotion. 9. If you are willing to pay $ 2, 000 for a laptop with some specific performance level, but end up finding that exact laptop for $ 1, 500 then how much is the consumer surplus you are enjoying. A) $ 0. B) $ 500. C) $ 1, 500. D) $ 2, 000. Show Answer Correct Answer: D) $ 2, 000. 10. Products that can be used in a place of other products A) Substitutes. B) Goods. C) Substitution effect. D) None of above. Show Answer Correct Answer: A) Substitutes. 11. A market does care about your A) Religion. B) Money. C) Colour. D) Hates or likes. Show Answer Correct Answer: B) Money. 12. According to the law of supply, the relationship between price and quantity supplied is: A) Direct. B) Inverse. C) Not correlated. D) None of above. Show Answer Correct Answer: A) Direct. 13. Some consumers will continue to buy about the same amount of a product even if the price increases. In economic terms, this represents: A) Inelastic demand. B) Flexible demand. C) Elastic demand. D) None of above. Show Answer Correct Answer: A) Inelastic demand. 14. Define inelastic demand. A) A measure of how consumers react to a change in price. B) Demand that is not very sensitive to a change in price. C) Demand that is very sensitive to a change in price. D) A measure of the way quantity supplied reacts to a change in price. Show Answer Correct Answer: B) Demand that is not very sensitive to a change in price. 15. How does the demand curve show an increase in demand? A) The curve shifts left. B) The curve shifts right. C) Movement along the curve. D) There is no change. Show Answer Correct Answer: B) The curve shifts right. 16. When a consumer is able and willing to buy a good or service, he or she creates which of the following? A) Consumption. B) Demand. C) Elasticity. D) Allocation. Show Answer Correct Answer: B) Demand. 17. What determines the price and the quantity produced of most goods? A) The interaction of supply and demand. B) Demand. C) Supply. D) None of above. Show Answer Correct Answer: A) The interaction of supply and demand. 18. Products that can be used in place of each other are called ..... A) Substitutes. B) Complements. C) Tastes. D) Inferior goods. Show Answer Correct Answer: A) Substitutes. 19. Which is NOT an economic goal of a market economy? A) Economic efficiency. B) Economic freedom. C) Economic growth and innovation. D) Economic equity. Show Answer Correct Answer: D) Economic equity. 20. The capital that is consumed by an economy or a firm in the production process is known as: A) Capital loss. B) Production cost. C) Dead-weight loss. D) Depreciation. Show Answer Correct Answer: D) Depreciation. ← PreviousNext →Related QuizzesMicroeconomics QuizzesDemand Quiz 1Demand Quiz 2Demand Quiz 3Demand Quiz 4Demand Quiz 5Demand Quiz 6Demand Quiz 7Demand Quiz 8Demand Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books