Economics Quiz

Consumer demand is defined as

• how frequently the prices change.

• the willingness and ability people have to buy a good.

• how frequently the people are willing pay for something.

• how often people want something delivered.

Which best explains how the law of demand affects consumers?

• It helps consumers know when prices are going down.

• It helps consumers know when prices are going up.

• It helps consumers tell producers when prices are too high.

• It helps consumers tell producers when to make new goods.

The law of demand applies most directly to which group?

• buyers

• sellers

• producers

• lawmakers

According to the law of demand, as prices decrease, the quantity demanded

• decreases.

• increases.

• stays the same.

• disappears.

Consumers create demand for

• goods and services.

• sales and low prices.

• goods and income.

• services and low prices.

Microeconomics is the study of the economic interactions between

• producers and their suppliers.

• Consumers and the government

• Consumers and producers

• Producers and the government

Which best describes a reason that consumer demand can change?

• loss of income

• loss of supply

• distribution problems

• market problems

Maria purchases a premium brand of coffee at the grocery store for $8. Which would be considered a substitute good?

• a coffee pot

• a bottle of coffee creamer

• a lower-priced brand of coffee

• a pound of sugar

An example of complementary goods would be

• computers and printers.

• cars and trucks.

• sheets and towels.

• food and clothing.

The degree to which quantity demanded changes after a price change is called

• elasticity of demand.

• a substitute good.

• a complementary good.

• consumer demand.