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Individual demand

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Refer to Figure above. From the information in the figure we can obtain:

a)

A) a point on a demand curve.

b)

B) a series of points on a demand curve.

c)

C) a price-consumption curve.

d)

D) an income-consumption curve.

2.

The connection of points B and D forms:

a)

A) a demand curve.

b)

B) an income-consumption curve.

c)

C) a price-consumption curve.

d)

D) a shift from one demand curve.to another.

3.

From the information on the figure, we can obtain:

a)

A) an upward-sloping demand curve.

b)

B) two points on a downward-sloping individual demand curve.

c)

C) a downward-sloping market demand curve.

d)

D) a demand curve for food and clothing.

4.

An individual demand curve can be derived from the ________ curve.

a)

price-consumption

b)

price-income

c)

income-substitution

d)

income-consumption

e)

Engel

5.

Which of the following is true regarding income along a price-consumption curve?

a)

Income is increasing.

b)

Income is decreasing

c)

Income is constant.

d)

The level of income depends on the level of utility.

6.

The income-consumption curve

a)

illustrates the combinations of incomes needed with various levels of consumption of a good.

b)

is another name for income-demand curve.

c)

illustrates the utility-maximizing combinations of goods associated with every income level.

d)

shows the utility-maximizing quantity of some good (on the horizontal axis) as a function of income (on the vertical axis).

7.

The connection of points A and B on the graph yields:

a)

a price-consumption curve.

b)

an income-consumption curve.

c)

an individual demand curve.

d)

an Engel curve.

8.

From the information on the figure we can derive:

a)

a price-consumption curve.

b)

two points on an individual demand curve.

c)

a shifting demand curve.

d)

an upward-sloping demand curve.

9.

The curves that connect points A and B on both graphs are:

a)

price-consumption curves.

b)

income-consumption curves.

c)

Engel curves.

d)

individual demand curves.

10.

Refer to Figure above. Which of the following goods is an inferior good?

a)

Steak

b)

Clothing

c)

Hamburger

d)

Food

11.

An Engel curve shows combinations of:

a)

income and prices.

b)

income and the quantity consumed of one good.

c)

two goods, for different levels of income.

d)

two goods, for different levels of prices.

12.

An Engel curve is backward-bending when:

a)

the good is inferior for all levels of income.

b)

the good is inferior at low levels of income.

c)

the good is normal above a certain level of income.

d)

the good is inferior after a certain level of income.