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Demand and Market Concepts Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What happens to the demand for an inferior good when income rises?

a)

Demand drops

b)

Demand rises

c)

Demand remains unchanged

d)

Demand doubles

2.

Which type of good has demand that does not change when income rises or falls?

a)

Neutral good

b)

Inferior good

c)

Normal good

d)

Substitute good

3.

What is a complement in economics?

a)

A good used with another good

b)

A good used instead of another

c)

A good owned by the government

d)

A good with demand that rises with income

4.

What does the term "demand" refer to?

a)

The willingness and ability of buyers to purchase goods at different prices

b)

The price of goods in the market

c)

The supply of goods available

d)

The cost of producing goods

5.

What is a demand schedule?

a)

A table showing demand at different prices

b)

A graph showing supply

c)

A list of goods available in the market

d)

A timetable for product delivery

6.

How does demand for a normal good change when income goes up?

a)

Demand goes up

b)

Demand goes down

c)

Demand remains unchanged

d)

Demand disappears

7.

What does a demand curve show?

a)

Demand at different prices

b)

Supply at different prices

c)

Income levels

d)

Production costs

8.

What does elasticity of demand measure?

a)

How much demand changes with price

b)

How much supply changes with price

c)

How much income changes with demand

d)

How much cost changes with production

9.

What is a substitute good?

a)

A similar good used instead of another

b)

A good used with another good

c)

A good owned by the government

d)

A good with demand that falls with income

10.

What is a market?

a)

Any place buyers and sellers meet to exchange goods and services

b)

A place where only sellers are present

c)

A government-owned property

d)

A contract between two people