Demand Quiz

According to the law of demand, if prices go up, demand ________

• goes up

• goes down

• stays the same

• does not exist

If the price of a slice of pizza were to drop from $4 to $3, then the demand for pizza would:

• go up

• go down

• stay the same

• not exist

Demand is the willingness to buy a good or service and the ability to pay for it.

• True

• False

The image above is an example of a:

• Demand schedule

• Demand curve

• Demand production

• Demand analysis

Which of the following would cause a change in demand? Select all that apply.

• Loss of income

• Shift in population size

• Price increase

• Substitute goods enter the market

• New technology

The graph above is an example of _______ demand.

• Elastic

• Inelastic

• Neutral

• Negative

If a demand curve has an elasticity of 3.2, we would say that the demand is:

• Elastic

• Inelastic

• Neutral

• Negative

If a demand curve has an elasticity of 0.3, we would say that the demand is:

• Elastic

• Inelastic

• Neutral

• Negative

Determine the elasticity of the graph above. Your answer should be in the form of a number.

Dennis sells prank kits to the local kids for $5. At that price, he's able to sell 20 kits. But he gets greedy and raises his price to $10, and the amount of prank kits he sells falls to 8. What is the elasticity of Dennis's prank kits? Your answer should be in the form of a number.