Demand And Supply For Goods And Services! Trivia Quiz

40 Questions | Total Attempts: 75

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Demand And Supply For Goods And Services! Trivia Quiz

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Questions and Answers
  • 1. 
    Above is the MARKET demand schedule for the Samsung Galaxy cell phones at a local cell phone retailer.  Graph the demand schedule.  After graphing shows how the graph would change if the price of Apple I phones suddenly dropped below those of Samsung.
    • A. 

      Graph on a separate

    • B. 

      Piece of paper and move on to the next question. Click on either option to move on to the next question.

  • 2. 
    What determinant of demand caused the change in the Samsung scenario in question #1?
    • A. 

      Consumer Tastes and Advertising

    • B. 

      Prices of Related Goods

    • C. 

      Income effect

    • D. 

      Population and Demographics

    • E. 

      None of the options

  • 3. 
    About 90 percent of big fish- such as giant tuna, swordfish, and Chilean sea bass- are gone from the world's oceans mainly due to over fishing to satisfy demand.  In fact, at a UN summit meeting in 2002, 192 nations signed a declaration to try to restore such fish to healthy levels by 2015.  Chilean sea bass is a good example of what happened to the big fish.  Eight to ten years ago, very few people had heard of this fish.  There wasn't much demand, and it was selling at $3 to $4 a pound.  Then it became the "hot new fish."  Suddenly, Chilean sea bass was featured on thousands of restaurant menus and sold in most supermarkets.  Fishermen couldn't catch enough sea bass to keep up with the rising demand, though they tried.  They were over fishing and not giving the fish enough time to replenish their populations.  Today, even with the protection afforded by the nations signing the declaration, Chilean sea bass is so scarce that it sells for $18 to $20 a pound, and it is typically found on the menu of upscale restaurants.  At $20 per pound, the quantity demanded has remained inelastic.  Unfortunately, the species also is nearly gone from our oceans.   How has the increase in price affected the quantity demanded for Chilean sea bass?
    • A. 

      It has increased quantity demanded dramatically.

    • B. 

      It has decreased quantity demanded dramatically.

    • C. 

      It has not affected quantity demanded greatly.

    • D. 

      It has caused a shift in the demand curve to the right

  • 4. 
    About 90 percent of big fish- such as giant tuna, swordfish, and Chilean sea bass- are gone from the world's oceans mainly due to over fishing to satisfy demand.  In fact, at a UN summit meeting in 2002, 192 nations signed a declaration to try to restore such fish to healthy levels by 2015.  Chilean sea bass is a good example of what happened to the big fish.  Eight to ten years ago, very few people had heard of this fish.  There wasn't much demand, and it was selling at $3 to $4 a pound.  Then it became the "hot new fish."  Suddenly, Chilean sea bass was featured on thousands of restaurant menus and sold in most supermarkets.  Fishermen couldn't catch enough sea bass to keep up with the rising demand, though they tried.  They were over fishing and not giving the fish enough time to replenish their populations.  Today, even with the protection afforded by the nations signing the declaration, Chilean sea bass is so scarce that it sells for $18 to $20 a pound, and it is typically found on the menu of upscale restaurants.  At $20 per pound, the quantity demanded has remained inelastic.  Unfortunately, the species also is nearly gone from our oceans.   What determinant of demand caused the shift in demand for the Chilean Sea bass?
    • A. 

      Income Effect

    • B. 

      Substitution Effect

    • C. 

      Consumer tastes and advertising

    • D. 

      Inferior good effect

  • 5. 
    About 90 percent of big fish- such as giant tuna, swordfish, and Chilean sea bass- are gone from the world's oceans mainly due to over fishing to satisfy demand.  In fact, at a UN summit meeting in 2002, 192 nations signed a declaration to try to restore such fish to healthy levels by 2015.  Chilean sea bass is a good example of what happened to the big fish.  Eight to ten years ago, very few people had heard of this fish.  There wasn't much demand, and it was selling at $3 to $4 a pound.  Then it became the "hot new fish."  Suddenly, Chilean sea bass was featured on thousands of restaurant menus and sold in most supermarkets.  Fishermen couldn't catch enough sea bass to keep up with the rising demand, though they tried.  They were over fishing and not giving the fish enough time to replenish their populations.  Today, even with the protection afforded by the nations signing the declaration, Chilean sea bass is so scarce that it sells for $18 to $20 a pound, and it is typically found on the menu of upscale restaurants.  At $20 per pound, the quantity demanded has decreased considerably.  Unfortunately, the species also is nearly gone from our oceans.   According to the reading, why have nearly all of the big fish gone from the world's oceans?
    • A. 

      They are healthy to eat.

    • B. 

      The United Nations has failed to protect them

    • C. 

      High demand of these fish has led to overfishing

    • D. 

      They are cheap and easy to catch

  • 6. 
    About 90 percent of big fish- such as giant tuna, swordfish, and Chilean sea bass- are gone from the world's oceans mainly due to over fishing to satisfy demand.  In fact, at a UN summit meeting in 2002, 192 nations signed a declaration to try to restore such fish to healthy levels by 2015.  Chilean sea bass is a good example of what happened to the big fish.  Eight to ten years ago, very few people had heard of this fish.  There wasn't much demand, and it was selling at $3 to $4 a pound.  Then it became the "hot new fish."  Suddenly, Chilean sea bass was featured on thousands of restaurant menus and sold in most supermarkets.  Fishermen couldn't catch enough sea bass to keep up with the rising demand, though they tried.  They were over fishing and not giving the fish enough time to replenish their populations.  Today, even with the protection afforded by the nations signing the declaration, Chilean sea bass is so scarce that it sells for $18 to $20 a pound, and it is typically found on the menu of upscale restaurants.  At $20 per pound, the quantity demanded has remained inelastic.  Unfortunately, the species also is nearly gone from our oceans.  Why is the Chilean sea bass found only in menus for upscale restaurants?
    • A. 

      Wealthy individuals like to eat healthy

    • B. 

      Poor people don't like fish.

    • C. 

      The Chilean sea bass has become expensive

    • D. 

      The demand for the Chilean sea bass has decreased

  • 7. 
    Market demand is the demand of an individual consumer
    • A. 

      True

    • B. 

      False

  • 8. 
    If a 20% change in the price of a product results in an 8% change in the quantity demanded, then the demand for the product is?
    • A. 

      Elastic; 4.0

    • B. 

      Inelastic; .8

    • C. 

      elastic; 2.5

    • D. 

      Inelastic; .4

  • 9. 
    A consumers demand of this good,_________________, will decrease as his or her income increases. 
    • A. 

      Normal Good

    • B. 

      Inferior Good

    • C. 

      Substitute good

    • D. 

      Complementary Good

  • 10. 
    This occurs when a decrease in price increases a consumer's real income, making that consumers feel more wealthy.
    • A. 

      Real wealth effect

    • B. 

      Substitution effect

    • C. 

      Income effect

    • D. 

      Wealthy feeling

  • 11. 
    What would happen to the demand curve for Axe deodorant if Katy Perry, Lil Wayne, Taylor Swift, and Pitbull all announce that it is the only deodorant that they use when performing?  What would be the reason for this shift?
    • A. 

      The demand curve would shift left (inwards)- substitution effect

    • B. 

      The demand curve would shift right (outwards)-tastes and advertising

    • C. 

      The demand curve would shift right (outward)- expectations about the future

    • D. 

      The demand curve would shift left (inwards)- taste and advertising

  • 12. 
    What would happen to the demand curve for bus tickets in a city if the price of unleaded gasoline increased to $6.25 per gallon?  What would be the reason for the shift? (NOTE: Public bus transportation does NOT use unleaded gasoline)
    • A. 

      The demand curve for bus tickets would shift right (outwards)- substitution effect

    • B. 

      The demand curve would shift left (inwards)- substitution effect

    • C. 

      The demand curve would shift right (outwards)- consumer tastes and advertising

    • D. 

      The demand curve would not shift.

  • 13. 
    Many high school students would like to own an expensive sports car.  This has led to a high demand for these sports cars in the United States for teenagers. 
    • A. 

      True

    • B. 

      False

  • 14. 
    Demand for a normal good decreases as a person income increases
    • A. 

      True

    • B. 

      False

  • 15. 
    When the price of a haircut was raised from $12 to $16, the number of hair cuts sold each day fell from 20 to 16.  What is the elasticity of demand for haircuts.
    • A. 

      Elastic

    • B. 

      Inelastic

    • C. 

      Unitariy elastic

    • D. 

      Fantastic

  • 16. 
    Demand indicates how much of a product a consumer _____________  buy at a given price all other things constant.
    • A. 

      Is willing and able to

    • B. 

      Wants to and will

    • C. 

      Wants and needs

    • D. 

      Are able to

  • 17. 
    Which of the following does NOT cause a shift in a demand curve?
    • A. 

      Price of related goods

    • B. 

      Consumer expectations about future prices

    • C. 

      Number of consumers

    • D. 

      A change in the price of the good

  • 18. 
    Which of the following situations best illustrates the substitution effect?
    • A. 

      The price of your favorite songs on I Tunes decreases, and you are able to buy two songs this week instead of the usual one song per week.

    • B. 

      Alco offers a special where you buy one pair of shoes you and you get the second pair half off.

    • C. 

      You planned to eat a Subway $6 footlong sandwich but the price increased to $10. You decided to go to Metro Buffet for an all you can eat lunch for $9.00

    • D. 

      Your friend asked the person you wanted to go out with to prom out, so you asked someone else.

  • 19. 
    If the demand for a product is inelastic, then a price increase will cause total revenue to________
    • A. 

      Remain the same

    • B. 

      Increase

    • C. 

      Decrease

    • D. 

      None of the options

  • 20. 
    One purpose of advertising is to:
    • A. 

      Shift a product's demand curve to the right (outward)

    • B. 

      Shift a product's demand curve to the left (inward)

    • C. 

      Make a product's demand more elastic

    • D. 

      Help the consumers find the product's substitute goods.

  • 21. 
    Diego's Hummer has been parked in the garage for the past 6 months because gas prices have reached $4.00 a gallon.  He now carpools to school.  Diego's demand for gasoline is?
    • A. 

      Elastic

    • B. 

      Unitary elastic

    • C. 

      Inelastic

    • D. 

      His dad is cheap

  • 22. 
    When Sarah graduated from college she obtained a job as an accountant and was paid $65,000 a year job.  For that reason she was able to fill up an entire room closet full of her favorite Ugg boots.  Ugh boots are what type of product for Sarah?
    • A. 

      Inferior good

    • B. 

      Complementary good,

    • C. 

      Substitute good

    • D. 

      Normal good

  • 23. 
    Which of the following has an impact on the demand elasticity of a product?
    • A. 

      Availability of substitutes

    • B. 

      How important the product is to the consumer (if it is a need versus a luxury item)

    • C. 

      How much time a consumer has to react to the price change.

    • D. 

      All of the above

  • 24. 
    Which of the following is false about demand curves?
    • A. 

      They normally slope down from left to right

    • B. 

      They show the relationship between price and the quantity demanded

    • C. 

      They can be used to calculate a product's elasticity of demand

    • D. 

      They can slope down from the right to the left

  • 25. 
    According to  ____________, when prices increase quantity demanded will decrease.  In addition, when price decreases the quantity demanded will increase, all other things constant. 
    • A. 

      The Law of Supply

    • B. 

      Elasticity of demand

    • C. 

      The Law of Demand

    • D. 

      The Income effect law

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