Economics Topic 2 Quiz

What does the law of demand state?

• There is a positive relationship between the prices of a good or service and the quantity buyers are prepared to buy

• There is a negative relationship between the prices of a good or service and the quantity buyers are prepared to buy

• There is no relationship between the prices of a good or service and the quantity buyers are prepared to buy

• The relationship between prices and quantity demanded is always constant

What happens to the demand for goods when there is a price reduction in a department store?

• The demand decreases

• The demand remains the same

• The demand increases

• The demand fluctuates randomly

At what price does Bob's quantity demanded increase to 10 games per year?

• $10

• $15

• $20

• $25

What does the demand curve represent in the context of electronic games?

• The relationship between price and supply

• The relationship between price and demand

• The relationship between supply and demand

• The relationship between quantity and supply

What does a downward-sloping demand curve indicate?

• As price increases, quantity demanded increases

• As price decreases, quantity demanded decreases

• As price increases, quantity demanded decreases

• As price decreases, quantity demanded remains constant

What does the diagram showing an increase in quantity demanded illustrate?

• A shift to the right of the demand curve

• A shift to the left of the demand curve

• Movement up the demand curve

• Movement down the demand curve

What happens to the demand curve when a good or service becomes popular?

• It shifts to the right

• It shifts to the left

• It remains unchanged

• It fluctuates randomly

What is the effect on demand when there is a leftward shift in the demand curve?

• Increase in quantity demanded

• Decrease in quantity demanded

• Increase in demand

• Decrease in demand

What does each point on the supply curve represent in the given diagram?

• A quantity demanded at a particular price

• A quantity supplied at a particular price

• The equilibrium price

• The total revenue

If the price of an electronic game is $20, what is the quantity supplied by the seller per year?

• 25,000 games

• 35,000 games

• 45,000 games

• 55,000 games