Chapter 03- Fun Quiz

movement along the demand curve means

• a decrease in supply
• a shift in consumer preferences
• an increase in overall demand
• a change in quantity demanded due to a change in price

What does a rightward shift in the demand curve indicate?

• a decrease in consumer income

• an increase in the price of substitutes

• an increase in quantity demanded at every price

• a decrease in the number of buyers

Which of the following factors can lead to a movement along the demand curve?

• a change in consumer income

• a change in the price of the good

• a change in consumer expectations

• a change in the number of sellers

How does a decrease in the price of a good affect the quantity demanded?

• it decreases the quantity demanded

• it has no effect on quantity demanded

• it increases the quantity demanded

• it shifts the demand curve to the left

shift in demand curve means

• A change in demand at all price levels.
• A change in consumer preferences at one price level.
• A decrease in quantity supplied.
• An increase in price only.

What can cause a leftward shift in the demand curve?

• an increase in consumer income

• a decrease in the price of substitutes

• a decrease in consumer preferences

• an increase in the number of buyers

Which of the following best describes the law of demand?

• As price increases, quantity demanded decreases.

• As price decreases, quantity supplied decreases.

• As income increases, demand decreases.

• As the number of sellers increases, demand increases.

How does an increase in consumer expectations about future prices affect current demand?

• it decreases current demand

• it has no effect on current demand

• it increases current demand

• it shifts the demand curve to the right

What is equation of a demand curve

• Qd = a - bP
• Qd = a/P + b
• Qd = aP - b
• Qd = b + aP

What effect does a rise in consumer income have on the demand for normal goods?

• it decreases demand

• it has no effect on demand

• it increases demand

• it shifts the demand curve to the left