Demand and Utility Quiz

What is the definition of demand in economics?

• The amount of a product that a company can produce.

• The desire to own something and the ability to pay for it.

• The price at which a product is sold.

• The total revenue a company earns from selling a product.

What does utility refer to in economics?

• The usefulness or satisfaction a consumer receives from consuming a product.

• The total cost of producing a good.

• The demand for a product over time.

• The price at which a product is most profitable.

What is diminishing marginal utility?

• The increase in utility a consumer gets from consuming one additional unit of a good.

• The decrease in utility a consumer gets from consuming one additional unit of a good.

• The constant utility a consumer gets from each unit of a good.

• The utility a consumer gets from the first unit of a good.

Which of the following is NOT a component of demand?

• Consumer preferences

• Price of the product

• Production technology

• Income of consumers

How does the law of demand describe the relationship between price and quantity demanded?

• As price increases, quantity demanded increases.

• As price decreases, quantity demanded remains constant.

• As price increases, quantity demanded decreases.

• There is no relationship between price and quantity demanded.

What happens to the demand curve when there is an increase in demand?

• It shifts to the left.

• It shifts to the right.

• It remains unchanged.

• It becomes steeper.

What causes a demand curve to decrease or shift to the left?

• An increase in the price of substitutes.

• A decrease in the price of the product itself.

• A decrease in consumer income.

• An increase in consumer income.

Which factor is likely to cause an increase in demand for a product?

• A decrease in the price of complementary goods.

• An increase in the price of the product itself.

• A decrease in consumer income.

• An increase in the price of substitute goods.

What does a downward-sloping demand curve represent?

• The relationship between price and quantity supplied.

• The relationship between price and quantity demanded.

• The increase in demand over time.

• The decrease in demand over time.

If consumers expect the price of a product to rise in the future, what is likely to happen to the current demand for the product?

• It will decrease.

• It will increase.

• It will remain unchanged.

• It will fluctuate unpredictably.