Economics Quiz

What is the relationship between price and quantity demanded?

• Supply

• Demand

• Market Equilibrium

• Profit Maximization

Answer explanation

The relationship between price and quantity demanded is determined by the demand curve, showing how the quantity demanded changes in response to price changes.

Emma is at a market and sees a new gadget. What does 'willing' mean in demand?

• Consumers have sufficient income to buy the product

• Consumers want the product to derive satisfaction/utility from it

• Consumers are indifferent to the product

• Consumers are forced to buy the product

Answer explanation

Consumers want the product to derive satisfaction/utility from it

Isla wants to buy a new smartphone. What does 'able' mean in this context?

• Isla wants the smartphone to derive satisfaction/utility from it

• Isla has sufficient income to buy the smartphone

• Isla is indifferent to the smartphone

• Isla is forced to buy the smartphone

Answer explanation

In this context, 'able' means that Isla has sufficient income to buy the smartphone.

When is demand effective? Aria wants to buy a new laptop.

• When Aria is willing but not able to purchase the laptop

• When Aria is able but not willing to purchase the laptop

• When Aria is both willing and able to purchase the laptop

• When Aria is neither willing nor able to purchase the laptop

Answer explanation

When demand is effective, Aria is both willing and able to purchase the laptop, which means she has the desire and the means to make the purchase.

Abigail is at a farmers' market. What does the Law of Demand state about the apples she wants to buy?

• As the price of apples increases, the quantity demanded increases

• As the price of apples decreases, the quantity demanded decreases

• As the price of apples increases, the quantity demanded decreases

• As the price of apples remains constant, the quantity demanded increases

Answer explanation

As the price of apples increases, the quantity demanded decreases

Benjamin and Anika are discussing economic principles. What does 'Ceteris Paribus' mean?

• All other factors are variable

• All other factors are constant

• All other factors are increasing

• All other factors are decreasing

Answer explanation

Ceteris Paribus means all other factors are constant, indicating that only the specific factor being studied is changing while everything else remains the same.

Elijah is studying economics and comes across a concept called a demand schedule. What is a demand schedule?

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

• A graphical representation of the demand schedule.

• A list of products available in the market.

• A chart showing the supply of goods.

Answer explanation

A demand schedule is a table showing the relationship between price and quantity demanded, making it the correct choice.

In a classroom discussion, Anika asked, 'What does a demand curve represent?'

• A graphical representation of the demand schedule.

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

• A list of products available in the market.

• A chart showing the supply of goods.

Answer explanation

A demand curve represents a graphical representation of the demand schedule, showing the relationship between price and quantity demanded.

Liam is running a lemonade stand. What is the quantity demanded when the price is $80?

• 150 units

• 300 units

• 450 units

• 120 units

Answer explanation

The correct quantity demanded when the price is $80 is 300 units as per the given information.

Anika is shopping for a new phone. What is the price when the quantity demanded is 450 units?

• $120

• $80

• $40

• $60

Answer explanation

The correct price when the quantity demanded is 450 units is $40, as indicated in the answer choice provided.