Quiz on the Law of Demand

According to the Law of Demand, what occurs when the price decreases?

• Demand decreases

• Demand increases

• Demand remains constant

• Demand halves

Which of the following best describes the Law of Demand?

• As price increases, demand increases

• As price decreases, demand decreases

• As price increases, demand decreases

• Price and demand are unrelated

Tags

CCSS.RI.9-10.8

What does the Law of Demand suggest about consumer behavior?

• Consumers buy more as prices rise

• Consumers buy less as prices rise

• Consumers buy the same amount regardless of price

• Consumers stop buying completely

Which statement is true according to the Law of Demand?

• Higher prices lead to higher demand

• Lower prices lead to lower demand

• Higher prices lead to lower demand

• Prices do not affect demand

What does a demand curve illustrate?

• The supply of a product

• The demand for a product

• The cost of production

• The profit margin

At what price is the quantity demanded of apple juice 800 bottles per week?

• $0.75

• $1.00

• $1.25

• $1.50

What happens to the quantity demanded as the price increases from $0.75 to $2.00?

• It increases

• It decreases

• It remains the same

• It fluctuates

What does the elasticity of demand measure?

• The degree to which changes in price cause changes in demand

• The total revenue generated by sales

• The fixed cost of production

• The supply curve slope

What is the term used when the demand for a good is very sensitive to changes in price?

• Inelastic

• Elastic

• Static

• Rigid

What is the relationship between price and quantity demanded in an inelastic demand scenario?

• Directly proportional

• Inversely proportional

• No relationship

• Constant