Civic Literacy Demand & Supply Quiz

The law of demand refers to how

• demand never changes because people's expectations stay the same.

• price impacts taxes.

• the quantity demanded changes when the price of the good changes.

• the government uses tax money to pay government employees.

The law of demand says that when the ​ (a)   of a product rises, the quantity demanded ​ (b)   . 

• price
• decreases
• amount
• increases
• never changes

The slope of a demand curve is typically

• downward

• upward

The phrase "a change in demand" most directly implies a 

• movement along the curve

• movement along the price curve

• change in quantity demanded of a good

• shift in the demand curve (left or right shift)

To access Internet services, consumers must use a computer. If computer prices fall, what is the effect on the demand for Internet services

• the demand for Internet services increases
• the demand for Internet services decreases
• The demand for Internet services remains unchanged
• The demand for Internet services could increase, decrease, or stay the same depending on other factors 

Iceberg & romaine are two different types of lettuce. For most consumers, iceberg and romaine are 

• complements
• substitutes
• inferior goods
• resources

If the demand for used cars decreases after the price of a new car falls, used cars and new cars are

• inferior goods
• substitute goods
• complementary goods
• normal goods

If the demand for a good increases when people's incomes increase, 

• the good is an inferior good
• the law of demand is violated
• the good's demand curve must be upward sloping
• the good is a normal good

Ramen noodles are a staple food item for many college students. Ramen noodles are very inexpensive, easy to prepare, and can be combined easily with other foods. After students graduate, find employment, and earn a higher income, they decrease their Ramen noodle purchases significantly. In this case, Ramen noodles are: 

• a normal good
• an inferior good
• a complement for higher income people
• none of these are correct

If Mary used to buy 10 units at $4 each and now buys 15 units when the price is $4, her

• quantity demanded has increased
• quantity demanded has decreased 
• demand has increased
• demand has decreased