Economics Demand Quiz

What is demand?

• The supply of a good

• A desire to own something and the ability to pay for it

• Government control of prices

• A product's popularity

The law of demand states:

• When price increases, demand increases

• When price increases, demand decreases

• Price and demand are unrelated

• When price increases, supply decreases

Which of the following is a necessity?

• Concert tickets

• Jewelry

• Bread

• Designer purse

What does a demand schedule show?

• Production costs

• Consumer income levels

• Quantity demanded at various prices

• Supplier inventory

A demand curve:

• Is always horizontal

• Slopes upward

• Shows the relationship between price and quantity demanded

• Is a straight line from left to right

Individual demand refers to:

• What the entire population buys

• Demand by a single consumer

• Government-created demand

• Demand from multiple suppliers

Market demand combines:

• Government spending

• All individual demands in a market

• Production costs and labor

• Supply and demand

If one person buys three sodas a day, and three people buy the same, the market demand is:

• 3

• 6

• 9

• 12

What can cause individual demand to change?

• Change in law

• Price of labor

• Personal preferences or income

• Government policies

If a new smartphone is released and thousands want to buy it, this affects:

• Individual supply

• Global stock market

• Market demand

• Product taxes