MCQ Demand and Supply

A schedule that shows the various amounts of a product consumers are willing and able to purchase at each price in a series of possible prices during a specified period of time is called:

• supply

• demand

• quantity supplied

• quantity demanded

The reason for the law of demand can be best explained in terms of

• supply

• complementary goods

• the rationing function of prices

• diminishing marginal utility

Assume that the price of video game players falls. What most likely will happen to the equilibrium price and quantity of video games, assuming this market is competitive?

• Price will increase; quantity will decrease

• Price will decrease; quantity will increase

• Price will decrease; quantity will decrease

• Price will increase; quantity will increase

Given the following individuals’ demand schedules for Product X, and assuming these are the only three consumers of X, which set of prices and output levels below will be on the market demand curve for this product?

• $5: 3 units

• $4: 6 units

• $3: 10 units

• $2: 14 units

• $1: 18 units

Which change will decrease the demand for a product?

• a favorable change in consumer tastes

• an increase in the price of a substitute good

• a decrease in the price of a complementary good

• a decrease in the number of buyers

The income of a consumer decreases, and the consumer’s demand for a particular good increases. It can be concluded that the good is

• normal

• inferior

• a substitute

• a complement

Which of the following could cause a decrease in consumer demand for product X?

• a decrease in consumer income

• an increase in the price of goods that are substitutes for product X

• an increase in the price that consumers expect will prevail for product X in the future

• a decrease in the supply of product X

If two goods are substitutes for each other, an increase in the price of one will necessarily

• decrease the demand for the other

• increase the demand for the other

• decrease the quantity demanded of the other

• increase the quantity demanded of the other

If two products, A and B, are complements, then

• an increase in the price of A will decrease the demand for B

• an increase in the price of A will increase the demand for B

• an increase in in the price of A will have no significant effect on the price of B

• a decrease in the price of A will decrease the demand for B

If two products, X and Y, are independent goods, then

• an increase in the price of X will significantly increase the demand for Y

• an increase in the price of Y will significantly increase the demand for X

• an increase in the price of Y will have no significant effect on the demand for X

• a decrease in the price of X will significantly increase the demand for Y