WorksheetsRewanomics - Demand
Total questions: 35
Worksheet time: 9hrs 45mins
Name
Class
Date
1.
What show the quantities of products demanded at each price by ALL consumers in a market?
a)
An elasticity and consumption list
b)
A schedule of consumer prices
c)
A market pricing list
d)
A market demand schedule
2.
How did the existence of the Baby Boom generation change demand in the U.S.?
a)
Demand increased for different goods with each age they reached
b)
They integrated with society and had no impact on demand
c)
People were poor because they had too many kids, their demand dropped
d)
Didn't raise demand until they were adults with $ to spend
3.
What does it mean when the demand for a product is inelastic?
a)
People won't buy any of the product when the price goes up
b)
Price increase doesn't have a big impact on buying habits
c)
Customers are sensitive to the price of a product
d)
There are many satisfactory substitutes for the product
4.
What kind of table lists the quantity of goods that an INDIVIDUAL will buy at different prices?
a)
Demand Curve
b)
Market Demand Schedule
c)
Demand Schedule
d)
Market Demand Curve
5.
What is a basic principle of the law of demand?
a)
The higher the price, the more people will want the good
b)
Everyone has a limited income that they will spend
c)
When a good's price is lower, people will buy more of it
d)
Services are of interest in the same way goods are
6.
A shift in the demand curve means which of the following?
a)
A rise in prices
b)
A decrease in both price and quantity demanded
c)
A change in consumer income
d)
A change in demand at every price
7.
Which would be likely to be bought in the same quantity even if it doubled in price?
a)
Nike Shoes
b)
Telephones
c)
Food
d)
Computers
8.
Alex got a raise. His demand for $3 shirts (inferior good) will ______.
a)
Increase
b)
Decrease
c)
Stay the same
d)
Have no relation to his income
9.
Will has inelastic demand for Gatorade. The price increased from $1 to $1.50. How does he react?
a)
Bought 15 bottles a month at $1 and 20 a month at $1.50
b)
Bought 10 a month at $1 and 8 a month at $1.50
c)
Bought 15 bottles a month at $1 and 5 a month at $1.50
d)
Bought 10 bottles a month at $1 and 5 a month at $1.50
10.
Demand for movie rentals is highly elastic. If Redbox raises the price of a rental, it will ______.
a)
Lose revenue
b)
Gain revenue
c)
Possibly Gain or Lose Revenue
d)
See no change in revenue
11.
What kind of changes would be expected in the demand of a country with a growing population?
a)
Rise in the demand for recreation
b)
Shift in the demand for high-quality food
c)
Rise in the demand for shelter
d)
Lowering in the demand for automobiles
12.
What does unitary elastic demand mean?
a)
Elasticity of demand is mathematically determined
b)
Elasticity is different at each unit on price range
c)
Demand is inelastic at low price, becomes elastic at high price
d)
% change in QD = % Change in Price
13.
What is a company's total revenue?
a)
Price of a company's goods
b)
Amount a company receives for selling its goods
c)
Amount of goods a company can expect to sell
d)
Amount of profit a company can expect to make
14.
A good that the demand increases for as income rises
a)
Normal good
b)
Inferior good
c)
Shells and Cheese
d)
Substitute
15.
Peanut Butter gets more expensive and the demand for Jelly drops. This is a demand shift caused by ______.
a)
Substitute Effect
b)
Income Effect
c)
Consumer Expectation of Price
d)
Complementary Effect
16.
It is a hot summer day and I want something cold and sweet to eat. I want ice cream but see that frozen yogurt is on sale for half the price. I get the yogurt. What shifter changed by demand for ice cream?
a)
Complementary Effect
b)
Substitute Effect
c)
Income Effect
d)
Population Effect
17.
When a consumer is able and willing to buy a good, he creates what?
a)
Consumption
b)
Demand
c)
Elasticity
d)
Desire
18.
What are inferior goods?
a)
Goods that are not well produced
b)
Goods that nobody wants to buy
c)
Goods for which the demand rises when income rises
d)
Goods for which the demand falls when income rises
19.
How is the future price related to current demand?
a)
If price is expected to rise, the current demand drops
b)
If the price is expected to fall, current demand rises
c)
If the price is expected to rise, current demand rises
d)
Future price is not related to the current demand
20.
What determines how a change in price will affect total revenue for a company?
a)
Elasticity of Demand
b)
The company's pricing policy
c)
Values of Elasticity
d)
The Consumer's Incomes
21.
"All things held constant" is an assumption that has which effect on a demand schedule?
a)
It takes only prices into account
b)
It considers the effects of all possible changes of demand
c)
It is accurate no matter what changes occur
d)
It is accurate only at one price level
22.
When prices rise, what happens to your income?
a)
It goes down
b)
It rises to meet prices
c)
It buys less
d)
It is used to buy different things
23.
The price of movie tickets changed from $7 to $9. What is the most likely effect of price change?
a)
Demand curve for tickets will move to the right
b)
Quantity demanded for movie tickets will increase
c)
Demand curve for movie tickets will move left
d)
Quantity demanded of movie tickets will decrease
24.
What term describes demand with an elasticity value of less than 1?
a)
Unitary Elastic
b)
Inelastic
c)
Low
d)
Elastic
25.
A good that is always used with another good
a)
Complement
b)
Substitute
c)
Inelastic
d)
Normal Good
26.
A good that is used in place of another good
a)
Luxury
b)
Inferior good
c)
Complement
d)
Substitute
27.
Price x Quantity = _______.
a)
Profit
b)
Elasticity
c)
Revenue
d)
Demand
28.
I want to buy a new TV but I see that they are going on sale this weekend. I decide to wait until the weekend to get it. My current demand shifted because of ______.
a)
Consumer Expectation of Price
b)
Consumer Tastes and Advertising
c)
Complementary Effect
d)
Substitute Effect
29.
All of my friends have the new iPhone. I decided I really want a new iPhone too. Which shifter changed my demand?
a)
Population Effect
b)
Consumer Expectation of Price
c)
Consumer Tastes and Advertising
d)
Substitute Effect
30.
Gas prices increase 200% since last year. What happens to the demand for new pickup trucks?
a)
It goes down - shifts left on the graph
b)
It goes up - shifts right on the graph
c)
It stays the same - price effect
31.
Apple has a big sale on its laptop computers. What happens to the demand for its desktop computers?
a)
It goes down - graph shifts left
b)
It goes up - graph shifts right
c)
It stays the same - price effect
32.
A new study shows that eating bugs makes you live twice as long. What happens to the demand for bugs?
a)
It increases - graph shifts to the right
b)
It decreases - Graph shifts to the left
c)
It stays the same - price effect
33.
All of the following are true for goods with ELASTIC demand, EXCEPT _______
a)
They are luxuries
b)
They have lots of substitutes
c)
They are necessities
d)
Buying habits change a lot when price changes
34.
Which is NOT TRUE of goods with INELASTIC DEMAND
a)
Things you need
b)
Buying habits don't change much with price
c)
extra things you don't need
d)
An example is cancer medicine
35.
Jets Pizza has a 50% off sale on their deep dish pizza. What happens to the demand for deep dish pizza?
a)
Increases - graph shifts right
b)
Decreases - graph shifts left
c)
Stays the same - price effect changes Quantity Demanded
100 %
