Demand and Market Demand Quiz

What does the law of demand state?

• When prices go up, quantity demanded stays the same.

• When prices go down, quantity demanded decreases.

• When prices go up, quantity demanded increases.

• When prices go down, quantity demanded stays the same.

What is a demand schedule?

• A graph showing the relationship between price and quantity demanded.

• A listing of how much of an item all consumers are willing to purchase at each price.

• A listing of how much of an item an individual is willing to purchase at each price.

• A table showing the total revenue at different price levels.

What does the demand curve graphically show?

• The relationship between price and consumer surplus.

• The relationship between price and total revenue.

• The relationship between price and quantity supplied.

• The relationship between price and quantity demanded.

What is market demand?

• The demand for a product by a specific group of consumers.

• The demand for a product in a specific geographic area.

• The demand for a product in a specific time period.

• The demand for a product by all consumers in the market.

What is demand?

• The willingness to buy a good or service regardless of the ability to pay for it.

• The willingness to buy a good or service without the ability to pay for it.

• The willingness to buy a good or service and the ability to pay for it.

• The ability to buy a good or service regardless of the willingness to pay for it.

What does the law of diminishing marginal utility state?

• The marginal benefit of using each additional unit of a product will fluctuate

• The marginal benefit of using each additional unit of a product will remain constant

• The marginal benefit of using each additional unit of a product will increase

• The marginal benefit of using each additional unit of a product will decline

What is the income effect in consumer behavior?

• A change in the amount that consumers will buy because they buy substitute goods instead

• The change in the amount that consumers will buy because the purchasing power of their income changes

• An increase in the amount demanded because of change in price

• A decrease in the amount demanded because of change in price

What are normal goods in economics?

• Goods that consumers demand less of when their incomes rise

• Goods and services that can be used in place of each other

• Goods that consumers demand more of when their incomes rise

• Goods that are used together, so a rise in demand for one increases the demand for the other

What is the substitution effect in consumer behavior?

• An increase in the amount demanded because of change in price

• The change in the amount that consumers will buy because the purchasing power of their income changes

• A change in the amount that consumers will buy because they buy substitute goods instead

• A decrease in the amount demanded because of change in price

What is the change in quantity demanded?

• A change in the amount demanded because of change in consumer preferences

• A decrease in the amount demanded because of change in price

• A change in the amount that consumers will buy because the purchasing power of their income changes

• An increase in the amount demanded because of change in price