Demand Quiz

Ceteris Paribus means...

• Demand comes before Profit

• All other things remain constant

• The greater the price, the greater the demand

• The ends are justified by the economic means

The law of demand states that as prices go up...

• Supply goes up

• Demand goes up

• Supply goes down

• Demand goes down

The substitution effect states that as prices _______ on a product, consumers consume less of that product and more of its substitutes.

• Drop

• Rise

• Change

• All of the above

What do we call it when a rise in prices reduces your demand for all other goods?

• The Income Effect

• Ceteris Paribus

• The Production Curve

• Inelastic Demand

Demand shifts are caused by...

• Changes in Supply

• Constant reinforcement

• Non-Price Determinants

• All of the above

Normal Goods are...

• Goods that do not require compliments to use

• Goods that people demand more of as their income increases

• Goods that require compliments to use

• Goods that people demand more of as their income decreases

Which of the following is an example of consumer expectations?

• People don't buy much before Black Friday sales

• People tend to buy the cheapest product

• People don't like being told what to buy

• People are easily startled by large noises

What non-price determinants can businesses control?

• Consumer Tastes

• Consumer Income

• Advertising

• What goods are considered Inferior

Popularity of a product among the people is a part of...

• Consumer Expectations

• Consumer Tastes

• Changes in population size

• Related goods

If a product is said to have "Elastic" demand, that means that...

• Demand is VERY responsive to a change in price

• Demand is VERY unresponsive to a change in price

• Price will shift to match demand

• Demand is both responsive and unresponsive to price