A change in the price of a good causes people to buy more or less of an item. This best describes the concept of
the demand curve
change in quantity demanded
change in demand
elasticity
Q.2.
As prices for a product decrease, demand for a product should increase..
diminishing marginal utility
elasticity
income effect
law of demand
Q.3.
The more of a product that you consume, the less satisfaction the consumer enjoys..
income effect
diminishing marginal utility
demand elasticity
purchasing power
Q.4.
The more money that a person makes, the more they are willing to spend..
diminishing marginal utility
substitute effect
total revenue
income effect
Q.5.
According to the Law of Demand, when prices drop...
demand will also drop
demand will increase
quantity demanded is unchanged
supply increases
Q.6.
When prices rise for a particular product, consumers will purchase lower-priced similar items..
income effect
substitute effect
diminishing marginal utility
law of demand
Q.7.
The basic problem of economics is ___.. we just don't have the resources to take care of ALL of our wants/needs!
opportunity cost
diminishing marginal utility
purchasing power
scarcity
Q.8.
A product may be amazing, but unless people can actually afford it, it's not really in deman.
True
False
Q.9.
An oil refinery fire could cause the price of gas to __
increase
decrease
stabilize
fluctuate wildly
Q.10.
Law of demand will be applicable only if:a. No change in price of related commodities.b. No Change in Population.c. Alterations in Supplyd. Change in Income of the consumer
a & b
a, b & d
b & d
All of the Above
Q.11.
Other things remaining the same, the amount demanded increases with a fall in price and diminishes with a rise in price.
Is it true for Law of Demand
It is incorrect for the Law of Demand
It is true for Law of Supply
It is incorrect for the Law of Supply
Q.12.
An example of Substitute goods could be:
Car and Fuel
Mobile Phone and Charging cable
Butter and Jam
Bread and Butter
Q.13.
Demand can be defined as the quantity of a product that consumers are able and willing to purchase
at a particular price
during a specified period of time provided
other things remain constant
All of the above
Q.14.
Pizza and a Burger would be an example for
Complementary Goods
Substitute Goods
Both
Neither
Q.15.
In a market economy, who decides on the prices of goods and services?
government
buyers and sellers
firms
local leaders
Q.16.
When consumers react to an increase in a good's price by consuming less of that good and more of other goods.
Cost Effect
Income Effect
Substitution Effect
Inflationary Effect
Q.17.
Assume that good A and good B are substitutes for each other. Andrea is currently consuming the utility-maximizing combination of these two goods.How will the marginal utility of good A (MUA) and marginal utility of good B (MUB) change if Andrea alters her consumption as a result of an increase in the price of Good B?
MUB will increase and MUA will decrease as the consumer reallocates consumption.
MUA will increase and MUB will decrease as the consumer reallocates consumption.
MUA and MUB will both definitely increase.
MUA and MUB will both definitely decrease.
MU will both increase, but the MUA will increase by more than the increase in MUB.
Q.18.
Meeps and Blops are two goods that are related to each other. When the price of Meeps goes down, the demand for Blops goes down.Based only on the information given here, what kind of goods are Meeps and Blops?
substitutes
normal goods
complements
superior goods
inferior goods
Q.19.
Which of the following correctly describes a change in quantity demanded and a change in demand?
A change in quantity demanded is a response to a price change and a change in demand is a response to a non-price change
A change in demand and a change in quantity demanded both happen in response to price changes
Both describe a movement along a single demand curve
The two terms can be used interchangeably
A change in quantity demanded occurs when price increases and a change in demand occur when a price decreases
Q.20.
Which of the following best describes the 'law of demand'?
When price increases, the quantity demanded decreases.
Demand decreases for a normal good when income increases.
Legal authorities regulate prices.
People demand the same amount of a good no matter its price.
Sellers set the price that demanders pay.
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