Microeconomics - Demand

1. 1. Which of the following is most likely the reason why the demand for gasoline will increase today?

• a. Consumers expect a potential oil price increase in the coming days.

• b. Prices at nearby gasoline stations announced a price increase today.

• c. A new technology for pumping gas has been installed at nearby gasoline stations.

• d. The tricycle and jeepney operators announced that the fare for public transportation will decrease today.

2. 2. Which of the following determinants of demand is at play when Divisoria gets crowded with shoppers during the Christmas season?

• a. Prices of inputs

• b. Government policy

• c. Number of consumers

• d. Prices of related goods

3. 3. Which of the following will lead to an increase in quantity demanded?

• a. Decrease in price

• b. Increase in income

• c. Decrease in related goods

• d. Technological advancement

4. 4. The entire relationship between price and quantity demanded that is illustrated by a graph is called ___.

• a. Demand

• b. Demand curve

• c.  Demand schedule

• d. Quantity demanded

5. 5. The price of milk tea has increased from 38 to 50 Pesos. Which of the following will most likely occur if all other things are the same?

• a. The demand for milk tea will increase

• b. The demand for milk tea will decrease

• c. The quantity demanded of milk tea will increase

• d. The quantity demanded of milk tea will decrease

6. 6. Which of the following statements reflects the downward-sloping demand curve?

• a. When price falls, buyers willingly buy less

• b. Price is positively related to quantity demanded

• c. When price increases, suppliers are willing to supply more goods

• d. There is an inverse relationship between price and quantity demanded

7. 7. When your mother received a salary increase, instead of buying restaurant meals, she bought a sack of rice. What kind of good is rice?

• a. Normal good

• b. Inferior good

• c. Substitute good

• d. Complementary good

8. 8. iPhones and Android phones are substitute goods. This means that when the price of iPhone increases, the demand for Android phones will ___.

• a. Double

• b. Increase

• c. Decrease

• d. Stay the same

9. 9. Which of the following pairs are complementary goods?

• a. Beef and pork

• b. Coffee and tea

• c. Laptop and charger

• d. Bicycle and Motorcycle

10. 10. During summer, tourists enjoy swimming, which increases the demand for beach resorts. Which of the following illustrates the increase in demand?

• a. Movement along the supply curve

   

• b. Movement along the demand curve

• c. Shift of the demand curve to the left

• d. Shift of the demand curve to the right