Economics Quiz

What is demand according to the Law of Demand?

• The ability to sell goods or services at a high price.

• The desire to have some good or service and the ability to pay for it.

• The quantity of goods available in the market.

• The production rate of goods and services.

What does the Law of Demand state about the relationship between the price of a good or service and the quantity demanded?

• As the price increases, the quantity demanded remains constant.

• As the price increases, the quantity demanded also increases.

• As the price decreases, the quantity demanded decreases.

• As the price decreases, the quantity demanded increases.

According to the Law of Demand, how does price influence demand?

• Price has no influence on demand.

• Price is the only factor that influences demand.

• Price is a major factor that influences demand.

• Price influences demand only when the product is a luxury item.

What kind of relationship do Quantity Demanded and Price have according to the Law of Demand?

• Direct (same direction)

• Inverse (opposite direction)

• Constant (no change)

• Random (no specific pattern)

How much money does Cheryl have to spend on DVDs at Montclair Video Mart?

• $15

• $45

• $5

• $50

What is the price of most of the DVDs Cheryl wants?

• $45

• $5

• $15

• $50

If Cheryl buys DVDs that cost $15 each, how many DVDs can she buy with her $45?

• 1

• 2

• 3

• 4

If the price of the DVDs Cheryl wants drops to $5 each, how many DVDs can she buy with her $45?

• 5

• 9

• 8

• 10

What economic principle is illustrated by the statement "The law of demand explains how consumers behave"?

• Law of Supply

• Law of Demand

• Law of Conservation

• Law of Gravity

What is a Demand Schedule?

• A list of demands made by consumers to producers.

• A table that shows how much of a good or service an individual consumer is willing and able to purchase at each price in a market.

• A government document that regulates market prices.

• A schedule for when a product will be released to the market.