Demand Quiz

The demand curve represents the purchasing behavior of ______.

• Consumers

• Producers

• Producers and Consumers

• Laborers

Which of the following summarizes the law of demand?

• When the price of a product is higher, more consumers will purchase the product

• Inflation causes higher prices

• When the price of a product is lower, consumers will purchase more of that product

• Investors only care about profit

If the price of gas goes up, there will be _____

• A decrease in the demand for gas

• An increase in the demand for gas

• A change to the supply curve for gas

• No change to the demand curve for gas

Which of the following will result in an increase in demand due to consumer expectations?

• Producers think it will be a warm summer, so they produce more swimsuits

• Consumers suddenly love neon, so they buy more neon shoes

• Consumer income rises so people buy fewer inferior goods

• Consumers think it will be a cold winter, so they buy more blankets

If the price of peanut butter decreases, then what will happen to the demand for jelly?

• There will be a decrease in demand for jelly

• There will be an increase in demand for jelly

• There will be an increase in demand for peanut butter

• There will be no change to the demand curve for jelly

What two effects help explain the downward sloping shape of the demand curve?

• Substitute and Compliment Effects

• Normal and Inferior Effects

• Supply and Demand Effects

• Substitute and Income Effects

Which of the following scenarios would NOT shift the demand curve for picture frames?

• A decrease in the price of picture frames

• A change in the price of printing photos

• A celebrity promotes the wonders of picture frames

• An increase in income for most picture frame purchasers

For a normal good, when the consumer income of an economy decreases,

• fewer consumers will purchase that product

• more consumers will purchase that product

• the demand of that product will not change

• none of the above are true

On the demand curve, price and quantity demanded are

• decreasing simultaneously

• both measured on the x-axis

• directly related

• indirectly (inversely) related

Movement along the demand curve means there is a(n)

• decrease in demand

• increase in demand

• change in the product's price

• change in the consumer's income