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WorksheetsOCTOBER 25 QUIZ CHAPTER 2 DEMAND.DIL 24/2HIJ
Total questions: 80
Worksheet time: 1hrs 19mins
Which of these is an example of an inferior good?
When a consumer is able and willing to buy a good or service, he or she creates which of the following?
consumption
demand
elasticity
supply
What are inferior goods
goods that are not produced well.
goods that no one wants to buy
goods that consumers demand rises for when their income rises
goods that consumers demand falls when their income rises
Ceteris Paribus, or "all other things held constant" is an assumption that has which of the following effects on a demand schedule.
It takes ONLY price into account
It considers the effects of all possible changes on demand
It is accurate no matter what changes occur
It is accurate only at one price level
What shows the quantities of products demanded at each price by ALL consumers in the market
an elasticity and consumption list
a schedule of consumer prices
A market pricing lists
A market demand schedule
What kind of table lists the quantity of a good that the individual consumer will buy at different prices.
demand schedule
demand curve
market demand schedule
market demand curve
What is the basic principle of the law of demand?
The higher the price, the more consumers will demand
Everyone has a limited income that they will spend
When a good's price is lower, more consumers will demand it.
Services are of interest the same way goods are
Which of the following is a good that might not be demanded by the consumer when prices rise?
complement
substitute
inferior good
luxury good
A shift in the demand curve means which of the following?
A change in demand at every price
a rise in prices
A decrease in price and quantity demanded
A change in consumer income
Which statement reflects the inverse relationship between quantity demanded and price?
As the price goes up, quantity demanded goes up.
As the price goes down, quantity demanded goes up.
As the supply goes up, the price goes up.
As the supply goes up, the demand goes up.
How does an increase in consumer population affect the demand for most products?
demand decreases
prices go down
demand increases
prices go up
A shift to the left in the demand curve indicates a(n)
decrease in price.
decrease in demand.
increase in population.
increase in demand.
What is demand...?
the willingness and ability of producers to create goods and services to take them to market.
act of creating an output, a good or service which has value and contributes to the utility of individuals.
willingness and the ability of customers to pay a given price to buy a good or service.
To obtain in exchange for money or its equivalent
This is a demand diagram of Coca-Cola:
What would change in the quantity demanded when the price of Coca-Cola changes from PA to PB?
QB....to QA
A....to B
B...to A
QA...to QB
Internal factors that influencing demand..
Consumer income
Population size
Price of goods itself
Expectation future price
The law of demand says
the higher the price the greater the demand
the lower the price the greater the demand
none of the above
The law of demand implies that
as price falls, demand increases
as price rises, demand decreases
as price falls, quantity demanded increases
as price rises, quantity demanded increases
The term ‘ceteris paribus’ means
other factor remain constant
one variable affects another
everything is variable
nothing is variable
The quantity demanded is
the amount of a good that consumers plan to purchase at a particular price
independent of the price of the good
independent of consumers' buying plans.
always equal to the equilibrium quantity.
Which of the following is consistent with the law of demand?
A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded.
An increase in the price of a soda causes a decrease in the quantity of soda demanded.
An increase in the price of a tape causes an increase in the quantity of tapes demanded.
A decrease in the price of juice causes no change in the quantity of juice demanded.
The law of demand implies that, other things remaining the same,
as the demand for cheeseburgers increases, the price of a cheeseburger will fall.
as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease.
as income increases, the quantity of cheeseburgers demanded will increase.
as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase.
Which of the following describe the CORRECT definition of demand?
Demand is a relation showing the quantities of goods and services that consumers are willing and able to buy at various prices during a given period of time.
Demand is a relation showing the shift of goods and services that consumers are willing and able to buy when income change.
Demand is the ability of producer produce goods and services based on their factor of production.
Demand is a general concept that can be used to quantify the response in one variable when other variable changes
Each point on the demand curve reflects
the highest price consumers are willing and able to pay for that particular unit of a good.
the highest price sellers will accept for all units they are producing.
the lowest-cost technology available to produce a good.
all the wants of a given household.
What effect does a decrease in consumer income have on the demand for normal goods?
No effect on demand
Demand becomes elastic
Demand decreases
Demand increases
If the price of a substitute good increases, what is likely to happen to the demand for the original good?
Demand becomes inelastic
No change in demand
Demand increases
Demand decreases
Which of the following factors can lead to a rightward shift in the demand curve?
Increase in consumer income
Decrease in the price of substitutes
Increase in the price of complements
Decrease in population
Change in quantity demanded involves
Movement along the curve
Shift in the curve
Collection of individual demand from the market
Non- price factor
Change in demand are influence by the factors below EXCEPT
Changes in the price of the goods
Income
Taste and preference
Advertisement
An increase in the price of new houses is likely to
decrease the price of apartment
increase the demand of apartment
decrease the supply of new houses
shift the demand curve for the apartment to the left
The diagram above illustrates a shift in the demand curve for good M from D to Di.
Which of the following explains the shift of the demand curve?
A fall in the cost of production of good M
An increase in the demand for related goods
The introduction of a new substitute good
A fall in the sales tax on good M
People come to expect that the price of a gallon of gasoline will rise next week. As a result,
next week's supply of gasoline decreases.
the price of a gallon of gasoline falls today.
today's supply of gasoline increases.
today's demand for gasoline increases.
When economists speak of preferences as influencing demand, they are referring to
the availability of a good to all income classes.
directly observable changes in prices and income.
the excess of wants over the available supplies.
an individual's attitudes toward goods and services
Which of the following would NOT shift the demand curve for turkey?
a change in tastes for turkey
a decrease in the price of ham
an increase in income
a change in the price of a turkey
When we say demand increases, we mean that there is a
movement to the right along a demand curve.
movement to the left along a demand curve.
leftward shift of the demand curve.
rightward shift of the demand curve.
A decrease in quantity demanded caused by an increase in price is represented by a
movement up and to the left along the demand curve.
movement down and to the right along the demand curve.
leftward shift of the demand curve.
rightward shift of the demand curve.
A reduction in the price of a good
does not shift the good's demand curve leftward but does decrease the quantity demanded.
shifts the good's demand curve leftward but does not decrease the quantity demanded.
shifts the good's demand curve leftward and also decreases the quantity demanded.
neither shifts the good's demand curve leftward nor decreases the quantity demanded
A reduction in the price of a good
does not shift the good's demand curve leftward but does decrease the quantity demanded.
shifts the good's demand curve leftward but does not decrease the quantity demanded.
shifts the good's demand curve leftward and also decreases the quantity demanded.
neither shifts the good's demand curve leftward nor decreases the quantity demanded
The price elasticity of demand for the vertical demand curve is
unitary elastic
perfectly elastic
inelastic
perfectly inelastic
Based on a survey, the income elasticity of demand for the iPad Mini is 1.4. This shows that the iPad Mini
is a normal goods
is a luxury goods
is a substitutes goods
is a necessity goods
A mother who buys her son two sets of school uniforms every year regardless of changes in their prices has a perfectly inelastic demand for school uniforms
TRUE
FALSE
The demand for Cheerios cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact that:
Cheerios are a luxury
there are more substitutes for Cheerios than for cereals as a whole
cereals are a necessity
consumption of cereals as a whole is greater than consumption of Cheerios
If a 3 percent decrease in the price of BMW cars results in a 5 percent increase in the number of BMW cars sold, the demand for BMW cars is unit elastic
TRUE
FALSE
The price elasticity of demand for a textbook is estimated to be 1 no matter what the price or quantity demanded. In this case,
a 10 percent increase in price will result in a 10 percent increase in the quantity demanded
an increase in price will decrease the total revenue of sellers
a decrease in price will increase the total revenue of sellers
a 10 percent increase in price will result in a 10 percent decrease in the quantity demanded
If the price elasticity of demand for a good is zero, this means that the goods
will still be in demand when there is an increase in price
will be purchased in the same quantity at any price level
will not be in demand when there is an increase in price
will be purchased in smaller quantities when there is an increase in price
A mother who buys her son two sets of school uniforms every year regardless of changes in their prices has a perfectly inelastic demand for school uniforms
TRUE
FALSE
When the price of printer goes down, what probably happens to the demand for toner?
The demand for toner increases
The demand for toner decrease
The change in the price of printer has no effect on the demand for toner
If everyone thinks that the price of chicken will go up next week, what is likely to happen to demand for chicken today?
The demand for chicken increases
The demand for chicken decrease
Expectations about the price of chicken has no effect on the demand for tomatoes today
In increase in quantity demanded is graphically represented by
Movement along a fixed demand curve
A shift of the entire demand curve
An increase in demand is graphically represented by
Movement along a fixed demand curve
A shift in the entire demand curve
The desire to have some good or service and the ability to pay for it
supply
equilibrium
demand
quantity demanded
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
