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Demand Review

Total questions: 40

Worksheet time: 2hrs 36mins

Name
Class
Date
1.

The law of demand argues that as prices rise

a)

the quantity demanded will fall

b)

the quantity demanded will rise

c)

the demand curve will shift to the right

d)

no change will occur

2.

This part of the market determines DEMAND

a)

buyers

b)

sellers

c)

suppliers

d)

store owners

3.

Which of the following will cause an increase in demand for snowboards?

a)

More costly production methods

b)

A decrease in the price of lift tickets (a compliment) at resorts in Colorado

c)

A decrease in consumer income

d)

A decrease in the population

4.

Demand can be best defined as

a)

an individual's need or desire for a good or service at a given price.

b)

how much of a good or service is being produced.

5.

The only thing that causes a movement along a supply or demand curve (Change in Quantity Demanded):

a)

Price Change

b)

Quantity Change

c)

Climate Change

d)

Weather Change

6.

Goods that are bought and used together are

a)

complementary goods

b)

substitute goods

c)

income goods

d)

unrelated goods

7.

Which of the following is likely to increase the demand for peanut butter?

a)

Fewer children in the population

b)

News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.

c)

A big increase in the price of jelly.

d)

A report from the Surgeon General of the United States that eating peanut butter makes people nutty.

8.

A shift of the demand curve represents

a)

a movement on the demand curve

b)

a change in the quantity demanded

c)

a change in demand

d)

all of the above

9.

If the number of buyers in the market increases, which of the following will happen?

a)

The supply in the market will increase

b)

The supply in the market will decrease

c)

The demand in the market will increase

d)

The demand in the market will decrease

10.

What will happen in the car market if consumers expect higher prices in the near future?

a)

The demand for cars will decrease

b)

The demand for cars will increase

c)

The supply of cars will drop

d)

The demand for cars will not change

11.

When goods are substitutes, which of the following occurs?

a)

The demand for one good moves in the opposite direction as the price of the other good

b)

The demand for one good does not affect the price of the other

c)

The demand for one good moves in the same direction as the price of the other good

d)

The supply for one good moves in the opposite direction as the price of the other good

12.

With complementary goods, which of the following occurs?

a)

The demand for one good moves in the same direction as the price of the other good

b)

The demand for one good moves in the opposite direction as the price of the other good

c)

The demand for one good does not affect the price of the other

d)

The supply of one good moves in the opposite direction as the price of the other good

13.

A change in the price of a good causes people to buy more or less of an item. This best describes the concept of

a)

the demand curve

b)

change in quantity demanded

c)

change in demand

d)

elasticity

14.

The quantity demanded of a good or service changes at all price levels best describes the concept of

a)

change in quantity demanded

b)

elasticity

c)

change in demand

d)

demand curve

15.

Which of these shows a decrease in the quantity demanded?

a)
b)
c)
d)
16.

Which of these shows an increase in the quantity demanded?

a)
b)
c)
d)
17.

The substitution effect helps you predict that if the price of carrots rises from 50¢ to $1 each, people will:

a)

buy more carrots

b)

buy other vegetables

c)

buy the same number of carrots

d)

create a shortage of carrots

18.

What impact does an increase in gasoline prices have on SUVs or other big cars?

a)

increases demand

b)

decreases demand

c)

increases supply

d)

decreases supply

e)

indeterminate since these are neutral goods

19.

Goods that go together like fish and tartar sauce are called?

a)

substitutes

b)

elastic goods

c)

inferior goods

d)

normal goods

e)

complementary goods

20.

An increase in price of a good will:

a)

shift the demand curve left

b)

shift the demand curve right

c)

increase the quantity demanded

d)

decrease the quantity demanded

e)

we don’t know

21.
A complement example would be all except
a)
butter and margarine 
b)
peanut-butter and jelly
c)
flashlight and batteries 
d)
cameras and film 
22.
When replacing a certain item with with a less costly item is an example of
a)
the substitution effect 
b)
the income effect 
c)
demand elasticity 
d)
complements 
23.
An increase in the number of consumers can cause 
a)
the demand curve to shift left
b)
the demand curve to shift right 
c)
the demand curve to shift up
d)
diminishing returns 
24.
when consumers have a need for a product that is urgent 
a)
the demand curve is inelastic 
b)
the demand curve is elastic 
c)
the demand curve is complementary 
d)
the demand curve is unit demand 
25.
Products that can be used in a place of other products 
a)
substitutes 
b)
goods 
c)
substitution effect 
26.
An increase or a decrease in quantity demanded due to a change in the relative price of the replacement product 
a)
Substitute 
b)
Substitute effect 
c)
marginal utility 
d)
income effect 
27.

You best friend would typically buy you a birthday cake, however, their job just cut wages by a dollar (- $1.00) an hour this week (-$40.00). What will happen to the demand curve for birthday cakes?

a)

It will shift right, increasing demand

b)

It will not shift

c)

It will shift left, decreasing demand

d)

The price of cakes will increase

28.

If a popular singer like Bruno Mars releases a new digital album, what will happen to the demand curve?

a)

It will shift left decreasing

b)

It will shift right increasing

c)

The demand curve will not shift

d)

It depends on the price of the album whether or not the curve will move

29.

What will happen to the demand for candy when the demand for roses changes (due to an increase in the price of a complementary good) and buying candy is less expense?

a)

demand will shift right, increasing

b)

demand will shift left, decreasing

30.

What happens to the demand for roses if the price of candy increases due to the increase in the price of cocoa? Candy is now $2 more a expensive.

a)

The demand curve for candy shifts right, increasing

b)

The demand curve for candy shifts left, increases

c)

The demand curve for roses shifts left, decreasing

d)

The demand for roses shifts right, increasing

31.

You go to work today and your boss tells you that you are getting an increase in your weekly income from $400 a week to $600. You are in the market for a new car that is priced at $10,000. The demand curve will shift which direction for new cars?

a)

The demand curve shifts right, increasing demand

b)

The demand curve shifts left, increasing demand

c)

The demand curve shifts left, decreasing demand

32.

UCF has two basketball games this weekend, they play on Saturday and Sunday.

What will happen to the demand for fast food in east Orlando this weekend?

a)

The demand curve will shift right, increasing

b)

The demand curve will shift right, decreasing

c)

The demand curve will shift left, decreasing

d)

The demand curve will shift left, increasing

33.

You anticipate a shortage of roses on Valentines Day, therefore, you decide to purchase roses on the Sunday before Valentines Day. This will cause the demand curve to?

a)

Shift right, increasing

b)

Shift left, increasing

c)

Shift right, decreasing

d)

Shift left, decrfeasing

34.

You anticipate the price of Valentine Day candy to rise on the Saturday before Valentine's Day, therefore you buy your candy on Friday, what will happen to the demand for Valentine's day candy on Friday?

a)

It will shift right, decreasing

b)

It will shift right, increasing

c)

If will shift left, increasing

d)

It will shift left, decreasing

35.

You and your friends decide to go out to eat at a sit down restaurant. All of you want a nice steak dinner. Texas Roadhouse has an hour wait for a table. Logan's Steakhouse does not have a wait. You choose to go to Logan's Steakhouse instead.


This would be an example of?

a)

Substitution Effect

b)

Complementary Goods

c)

Income Effect

d)

Quantity Demanded

36.

Identify which "Shifter" is involved: Kohl's announces a sale that is going to take place next weekend.

a)

Change in the number of consumers

b)

Change in complementary goods

c)

Change in consumer expectations

d)

Change in consumer tastes or preferences

37.

Identify which "Shifter" is involved: A large group of high school students are getting tired of using Smart Phones, so a lot of stuents go buy the old school flip phones again because of the simplicity of life.

a)

Change in consumer income

b)

Change in consumer expectations

c)

Change in complementary goods

d)

Change in consumer taste of preference

38.

Identify which "Shifter" is involved: Whit's raises every price on their menu $3.00.

a)

Change in consumer income

b)

Change in price of substitution goods

c)

NO shift in the demand curve.

d)

Change in the number of consumers

39.

Identify which "Shifter" is involved: All teachers get a pay raise, now they can buy more candy for their students.

a)

Change in consumer preference/taste

b)

Change in consumer income

c)

Change in price of substitute goods

d)

Change in complementary goods

40.

INCREASE or DECREASE in demand? Golf balls and golf tees are complementary goods. The price of all golf balls raise to more than double, this will ____________the demand of golf tees.

a)

INCREASE

b)

DECREASE