• 1. 
    Owen saw that the price of peaches had gone down, and so he decided to buy more peaches.Based on this information only, what does Owen's reaction reflect?

  • Owen's demand for peaches has increased.
  • Owen has experienced an increase in income.
  • Owen's quantity demanded for peaches has increased.
  • Owen observed that there has been an increase in the price of other fruit, a substitute for peaches.
  • 2. 
    Which best described the quantity of demand

  • this occurs when price changes
  • its the movement of the entire curve
  • this is the movement along a curve
  • occurs when the cost of inputs to products decrease
  • 3. 
    Which of the two following movements in this graph would represent an increase in quantity demanded but not a change in demand?

  • from point U to point T
  • from point S to point U
  • from point R to point U
  • from point S to point T
  • 4. 
    As a result of an increase in consumer incomes, the demand for ebooks has decreased.Based on this information, what can we definitely say about what type of good a ebook is?

  • an inferior good
  • a normal good
  • a substitute good
  • a complement good
  • 5. 
    Which of the following changes could this graph represent?

  • People do not like hats as much as they did before, so their demand has decreased
  • People do not like hats as much as they did before, resulting in an increase in the quantity demanded for hats
  • People like hats more than they did before, and their demand for hats has increased
  • There has been a decrease in the price of hats, resulting in an increase in the quantity demanded for hats
  • 6. 
    What happens to the demand curve when people expect future prices to increase and people buy now rather than later?

  • it stays the same
  • shifts to the left
  • shift to the right
  • moves up
  • 7. 
    The law of demand states that

  • price and quantity demanded are inversely related
  • the larger the number of buyers in a market, the lower will be product price
  • price and quantity demanded are directly related
  • consumers will buy more of a product at high prices than at low prices
  • 8. 
    How is a decrease in the price of a good illustrated on a demand graph?

  • There is downward movement along the demand curve.
  • There is upward movement along the demand curve
  • 9. 
    Consumers are willing to buy more at lower prices than higher prices

  • law of demand
  • scarcity
  • law of inverse
  • 10. 
    The desire to have some good or service and the ability to pay for it

  • supply
  • equilibrium
  • demand
  • quantity demanded
  • 11. 
    Tania recently got a new job as an accountant and is now making over $100,000 a year. As a result, what will happen to her demand for expensive jewelry?

  • Increase
  • Decrease
  • 12. 
    The more of a product that you consume, the less satisfaction the consumer enjoys..

  • income effect
  • diminishing marginal utility
  • demand elasticity
  • purchasing power
  • 13. 
    In a market economy, who decides on the prices of goods and services?

  • government
  • buyers and sellers
  • firms
  • local leaders
  • 14. 
    According to the Law of Demand, when prices drop...

  • demand will also drop
  • demand will increase
  • quantity demanded is unchanged
  • supply increases
  • 15. 
    Consider the market for SUVs. If the price of gasoline increases then the Demand for these vehicles will

  • increase
  • decrease
  • not be affected
  • 16. 
    A product may be amazing, but unless people can actually afford it, it's not really in deman.

  • True
  • False
  • 17. 
    The demand for Good X is given in the graph shown here.Which of the following could cause the shift of demand shown here?

  • Buyers of Good X expect the price of Good X to decrease in the future
  • An increase in the number of buyers of a good
  • People do not like Good X as much as they did before
  • An increase in the price of Good Y, which is a complement to good X
  • An increase in income if Good X is an inferior good
  • 18. 
    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
  • 19. 
    Determinants of demand include income, expectations, taste, and...

  • Consumer Preference
  • Taxes
  • Marginal Equity
  • Unit Elasticity
  • 20. 
    Pizza and a Burger would be an example for

  • Complementary Goods
  • Substitute Goods
  • Both
  • Neither
  • 21. 
    The demand for a(n) ___ increases as money income increases- that is, the demand curve shifts rightward when consumer income increases.

  • normal good
  • inferior good
  • superior good
  • declining good
  • 22. 
    The quantity demanded of a good or service changes at all price levels best describes the concept of

  • change in quantity demanded
  • elasticity
  • change in demand
  • demand curve
  • 23. 
    All of the following are examples of complements EXCEPT

  • butter and margarine
  • cameras and film
  • peanut butter and jelly
  • flashlights and batteries
  • 24. 
    Oreo cookies are now extremely expensive to purchase. Instead of buying Oreo cookies, I now want to buy Chips Ahoy. What determinant of demand does this likely fall under?

  • Change in Price of Complementary Good
  • Change in Price of Substitute Good
  • Change in Consumer Price Expectations
  • Change in Number of Consumers in the Market
  • 25. 
    An oil refinery fire could cause the price of gas to __

  • increase
  • decrease
  • stabilize
  • fluctuate wildly
  • 26. 
    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
  • 27. 
    This is a product that can be used in place of another product:

  • Product Good
  • Complementary Good
  • Related Good
  • Substitution
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