Demand Quiz

What is demand?

• A) The quantity of a good or service consumers are willing to buy at a particular price and point in time.

• B) The total amount of goods produced by a company.

• C) The price at which a good or service is sold.

• D) The number of consumers in a market.

Answer explanation

Demand refers to the quantity of a good or service consumers are willing to buy at a particular price and point in time, making option A the correct choice.

Which of the following is NOT a component of demand?

• A) The quantity of a good or service.

• B) Consumers' willingness to buy.

• C) The production cost of a good or service.

• D) A particular point in time.

Answer explanation

The correct choice is C) The production cost of a good or service because it is a factor that influences supply, not demand.

Demand is determined by which of the following factors?

• A) The quantity of a good or service, consumers' willingness to buy, at a particular price, and at a particular point in time.

• B) The supply of a good or service, the cost of production, and the number of producers.

• C) The marketing strategies, the brand value, and the advertising budget.

• D) The government policies, the tax rates, and the import duties.

Answer explanation

Demand is determined by the quantity of a good or service, consumers' willingness to buy at a particular price, and at a particular point in time, which aligns with option A.

What does the demand curve reflect?

• A) A direct relationship between price and quantity demanded.

• B) An inverse relationship between price and quantity demanded.

• C) A constant relationship between price and quantity demanded.

• D) No relationship between price and quantity demanded.

Answer explanation

The demand curve reflects an inverse relationship between price and quantity demanded, where as price increases, quantity demanded decreases.

What does the demand curve graph show?

• A) The price consumers are willing to pay and the quantity producers are willing to sell.

• B) The price producers are willing to sell and the quantity consumers are willing to buy.

• C) The price consumers are willing to pay and the quantity consumers are willing to buy.

• D) The price producers are willing to sell and the quantity producers are willing to sell.

Answer explanation

The demand curve graph shows the price consumers are willing to pay and the quantity consumers are willing to buy.

What is the likely demand for motor vehicles if the price is set at $35,000 per unit?

• 1,000 units

• 2,750 units

• 3,500 units

• 500 units

Answer explanation

At a price of $35,000 per unit, the likely demand for motor vehicles is 1,000 units as indicated in the correct answer choice.

If the price of a motor vehicle is reduced to $20,000 per unit, what is the expected demand?

• 1,000 units

• 2,750 units

• 3,000 units

• 1,500 units

Answer explanation

If the price is reduced to $20,000, the expected demand is 2,750 units as indicated in the correct answer choice.

What are the labels for the vertical and horizontal lines on a demand curve graph?

• The vertical line is labeled as quantity and the horizontal line is labeled as price.

• The vertical line is labeled as price and the horizontal line is labeled as quantity.

• Both lines are labeled as price.

• Both lines are labeled as quantity.

Answer explanation

The vertical line is labeled as price and the horizontal line is labeled as quantity.

What should you remember to state when creating a demand curve graph?

• The color of the lines.

• The units used for price and quantity and the name of the graph.

• The type of paper used.

• The time of day the graph was created.

Answer explanation

The correct choice is to remember the units used for price and quantity and the name of the graph when creating a demand curve graph.

Based on the provided table, what is the quantity of chocolate bars demanded when the price is $0.60?

• 1,500

• 1,750

• 3,500

• 5,000

Answer explanation

The quantity of chocolate bars demanded when the price is $0.60 is 3,500 as per the provided table.