Economics Demand Quiz

Which of the following best describes the Law of Demand?

• As price goes down, demand goes down. (and vice versa).
• As price goes down, demand goes up (and vice versa).
• As demand goes down, supply goes up.
• As demand goes up, price becomes elastic.

Consuming more of one good because of a change in price of another good is known as the 

• income effect
• substitution effect
• elasticity effect
• demand effect

A table that lists the quantity of a good that a single person will buy at each price in a market.

• demand schedule
• market demand schedule
• elasticity chart
• supply and demand graph

On a demand curve, the x-axis is _____.

• the price
• the quantity demanded

What do various points on a demand curve represent?

• change in demand
• change in quantity demanded
• change in marginal utility
• change in elasticity

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

• consumer expectations
• consumer taste
• decreasing marginal utility
• elasticity of demand

When summer comes, people begin purchasing bathing suits in large numbers. What causes this change?

• Change in income
• Prices or availability of substitutes
• Change in the weather or season
• Change in the number of buyers

What is not an example of a substitute?

• Disneyland and Six Flags
• Peanut butter and jelly
• Hershey's and Nestle chocolate
• Microsoft Word and Google Docs

Inferior goods are those that we do not have much demand for if we can afford better alternatives.
Which of these is an example of an inferior good?

• Bike
• Uber
• Taxi
• Public Bus

Thousands of people leave a small town due to a factory closing down.  Sales at the local grocery store become slow. What causes this shift in demand?

• Prices or availability of substitutes
• Prices or availability of complementary goods
• Change in the weather or season
• Change in the number of buyers