Understanding Demand Shifts Quiz

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

• It becomes flatter

• It shifts down and to the left

• It shifts up and to the right

• It remains unchanged

If the price of a good remains the same but the quantity demanded increases, what does it indicate?

• No change in market conditions

• An increase in demand

• A decrease in demand

• A decrease in supply

What is an example of an inferior good mentioned in the text?

• Fine dining

• Steak

• Instant ramen

• Caviar

Which factor can cause a shift in demand?

• Changes in the number of sellers

• Changes in production costs

• Changes in income

• Changes in technology

What happens to the demand for hamburgers if the price of hot dogs goes up?

• It increases

• It remains the same

• It fluctuates unpredictably

• It decreases

What type of goods are complements?

• Goods that are used together

• Goods that have no relation to each other

• Goods that are used separately

• Goods that are substitutes for each other

If people expect the price of a good to be higher in the future, what happens to the demand for that good today?

• It decreases

• It increases

• It remains unchanged

• It becomes volatile

What is the effect of a decrease in demand on the demand curve?

• It shifts up and to the right

• It shifts down and to the left

• It becomes steeper

• It becomes more elastic

Which of the following is a normal good?

• Fine dining

• Neither instant ramen nor fine dining

• Both instant ramen and fine dining

• Instant ramen

What can cause a decrease in the willingness to pay for the same quantity of a good?

• An increase in demand

• A decrease in demand

• An increase in supply

• A decrease in supply