Demand Quiz

If James and his friends experience the substitution effect, they will respond to a rise in the price of their favorite post-game snack by

• working extra hours to make more money.

• buying less of their favorite snack.

• buying more of their favorite snack.

• choosing another snack food instead of their favorite snack.

The owner of a sandwich shop surveyed her customers on how often they came in, which sandwiches they preferred, and what quantity of sandwiches they ordered. She then added up the quantities demanded by all her consumers at each price. What did she create?

• demand for sandwiches

• a market demand schedule

• the substitution effect

• an individual demand schedule

The difference between a market demand curve and an individual demand curve is that the market demand curve

• provides data about only one consumer.

• is curved and not straight.

• provides data about many consumers.

• is usually much shorter than an individual demand curve.

What is the main difference between a market demand curve and a market demand schedule?

• A market demand curve is helpful to a business owner; a market demand schedule is not.

• A market demand curve is a graphic representation of a market demand schedule.

• A market demand curve represents price; a market demand schedule represents consumer interest.

• A market demand schedule is used by producers; a market demand schedule is used by consumers.

In economics, the concept of demand is defined as the desire to own something

• that has not yet been manufactured or produced.

• and a willingness to pay more than other consumers for it.

• that a manufacturer is capable of producing.

• combined with the ability to pay for it.

According to the law of demand, when the price of pizza goes up,

• consumers will buy less pizza.

• consumers will save more money.

• pizza restaurants will stop making pizza.

• pizza restaurants will make more money.

Juanita has noticed that the price of bagels has gone up. Because of this, she has decided to buy a less expensive yogurt every morning for her breakfast. This is an example of the

• income effect

• law of demand

• substitution effect

• market demand schedule

Marty just finished creating a market demand schedule for his hardware store. Which of the following is he most likely trying to determine?

• How many tools he sold last year to his customers.

• Which contractors are the best customers of his products.

• How many tools are sold to all consumers in the market at various prices.

• Which of his competitors is the greatest threat to his business.

If Tino responds to a sharp increase in his transportation costs by buying fewer clothes, he is demonstrating

• horizontal demand.

• an individual demand schedule

• the income effect.

• the substitution effect.

Study the demand curves below. If the price of a slice of pizza decreased from $4.00 to $2.00, how would that change the number of slices of pizza demanded each day by the market?

• The demand would increase by 2 slices per day.

• The demand would decrease by 2 slices per day.

• The demand would increase by 100 slices per day.

• The demand would decrease by 100 slices per day.