2.1-2.4 Quiz

What is the definition of demand?

• The quantity of a good or service that consumers want to buy at various prices.

• The quantity of a good or service that consumers are both willing and able to buy at various prices.

• The total amount of goods and services produced in an economy.

• The price consumers are willing to pay for a good or service.

Match the following scenarios with their outcomes according to the Law of Demand.

• Price of a good changes erratically.

• Quantity demanded remains the same.

• Price of a good stays constant.

• Quantity demanded fluctuates unpredictably.

• Price of a good increases.

• Quantity demanded increases.

• Price of a good decreases.

• Quantity demanded decreases.

What type of relationship exists between price and quantity demanded according to the demand schedule?

• Direct relationship

• Inverse relationship

• No relationship

• Proportional relationship

Tags

CCSS.8.EE.B.5

What does the term "Ceteris Paribus" mean in the context of demand?

• All prices are constant.

• All other things held constant.

• All quantities are constant.

• All demand curves are constant.

Match the following scenarios with their effects on the demand curve.

• Change in the price of the good

• C) Causes movement along the demand curve

• Increase in the total number of buyers

• A) Shifts the demand curve to the left

• Decrease in consumer income

• D) Has no effect on the demand curve

• Stable market conditions with no external changes

• B) Shifts the demand curve to the right

What happens to the demand for a product if consumers expect its price to increase in the future?

• A) Demand decreases immediately

• B) Demand remains unchanged

• C) Demand increases immediately

• D) Demand decreases in the future

Match the following scenarios with their effects on the demand curve for a product.

• An increase in the popularity of the product

• D) An increase in the price of a complementary good

• An increase in consumer income

• B) A decrease in the price of a substitute good

• A decrease in the price of a complementary good

• C) An increase in the popularity of the product

• An increase in the price of a substitute good

• A) A decrease in consumer income

Inelastic goods are defined as goods for which people continue to buy in spite of (a)   changes.

• A) Goods for which demand increases
• B) Goods for which demand decreases
• C) Goods for which people continue
• D) Goods for which people alter the

Which of the following factors does NOT affect the elasticity of demand?

• A) Availability of substitutes

• B) Necessities vs. luxuries

• C) Importance of the good

• D) Production cost of the good

How does the availability of substitutes affect the elasticity of demand for a product?

• If substitutes are available, the product is more elastic.

• If substitutes are available, the product is more inelastic.

• Availability of substitutes has no effect on elasticity.

• If substitutes are available, the product becomes a necessity.