Demand Quiz

15 Questions | Total Attempts: 354

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Demand Quiz

Read the powerpoint slides on demand and then attempt this short quiz.


Questions and Answers
  • 1. 
    What is the law of demand?
    • A. 

      As the price increases more is demanded

    • B. 

      As the price decreases more is demanded.

    • C. 

      As the price level rises more is demanded.

    • D. 

      As the price increases less is demanded.

  • 2. 
    The expression "ceteris paribus" means: 
    • A. 

      All other things being different

    • B. 

      All other being correct

    • C. 

      All other things being equal

    • D. 

      All of the above.

  • 3. 
    Demand curves should be convex to the origin, but economists usually draw them as:
    • A. 

      Horizontal lines

    • B. 

      Vertical lines

    • C. 

      Straight lines

    • D. 

      Curved lines.

  • 4. 
    The reason why people consume more as the price falls can be explained by the income effect and the ___________________ effect. 
    • A. 

      Substitution

    • B. 

      Taxation

    • C. 

      Demand

    • D. 

      Supply

  • 5. 
    As income rises, what should happen to the demand curve for a normal good?
    • A. 

      It should shift to the left

    • B. 

      It should shift horizontally

    • C. 

      It should shift vertically

    • D. 

      It should shift to the right

  • 6. 
    If a good is considered inferior, what should happen as consumer income increases?
    • A. 

      Demand for the good should increase

    • B. 

      Demand for the good should fall.

    • C. 

      Demand should remain unchanged.

    • D. 

      Impossible to determine without further information.

  • 7. 
    Which of the following is the best example of an inferior good?
    • A. 

      Economy class airfares with Singapore Airlines

    • B. 

      Pepsi

    • C. 

      Walmart brand Cola

    • D. 

      Dell Computer

  • 8. 
    As incomes rises, the demand curve for an inferior good will:
    • A. 

      Move by the amount of the price change.

    • B. 

      Remain unchanged.

    • C. 

      Shift to the right

    • D. 

      Shift to the left

  • 9. 
    It is important to know if products are substitutes and _____________
    • A. 

      Compliments

    • B. 

      Expensive

    • C. 

      Cheap

    • D. 

      Overvalued.

  • 10. 
    Marketing may shift the demand curve to:
    • A. 

      Left

    • B. 

      Right

    • C. 

      Vertically

    • D. 

      No impact

  • 11. 
    A significant growth in the _______________ of a country will shift the demand curve to the right. 
    • A. 

      Money

    • B. 

      Minorities

    • C. 

      Rubbish

    • D. 

      Population

  • 12. 
    if a country has an aging population this could result in more demand for:
    • A. 

      Health services

    • B. 

      Retirement homes

    • C. 

      Financial planning services

    • D. 

      All of the above

  • 13. 
    The government increases taxes on cigarettes by 1000%.This would most likely result in a shift in the demand curve for cigarettes to the:
    • A. 

      Left

    • B. 

      Right

    • C. 

      No change

    • D. 

      Horizontally

  • 14. 
    What will lead to a complete shift in the demand curve?
    • A. 

      An increase in the price of the product.

    • B. 

      A decrease in the price of the product.

    • C. 

      A change in non price factors.

    • D. 

      A 100% change in the price of the product.

  • 15. 
    What will lead to a movement up or down a demand curve?
    • A. 

      A change in the price of a substitute

    • B. 

      A change in the price of a compliment.

    • C. 

      A change in the price of a product.

    • D. 

      All of the above.