Demand Analysis for Goods Quiz
Test your knowledge on demand theory with questions on law of demand, elasticity, consumer surplus, and more in this microeconomics quiz.
#1
What is the law of demand?
As the price of a good increases, the quantity demanded increases.
As the price of a good increases, the quantity demanded decreases.
As the price of a good decreases, the quantity demanded decreases.
As the price of a good decreases, the quantity demanded increases.
#2
Which of the following factors does NOT influence demand?
Price of related goods
Consumer income
Government regulations
Consumer preferences
#3
What does the demand curve illustrate?
The relationship between price and quantity demanded, holding all other factors constant.
The relationship between price and quantity demanded, ignoring all other factors.
The relationship between income and quantity demanded.
The relationship between price and quantity supplied.
#4
What is the law of diminishing marginal utility?
As the price of a good decreases, the quantity demanded decreases.
As a consumer consumes more units of a good, the additional satisfaction from each additional unit decreases.
As the price of a good increases, the quantity supplied increases.
As a consumer consumes more units of a good, the total satisfaction increases linearly.
#5
What is the formula for price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Change in quantity demanded / Change in price
Change in price / Change in quantity demanded
#6
What is the income elasticity of demand for inferior goods?
Negative
Zero
Positive
Indeterminate
#7
What is the cross-price elasticity of demand between complementary goods?
Positive
Zero
Negative
Indeterminate
#8
What does a shift to the right in the demand curve indicate?
An increase in quantity demanded at each price level.
A decrease in quantity demanded at each price level.
An increase in price with no change in quantity demanded.
A decrease in price with no change in quantity demanded.
#9
Which of the following is NOT a type of demand elasticity?
Price elasticity of demand
Income elasticity of demand
Substitution elasticity of demand
Cross-price elasticity of demand
#10
Which of the following goods is most likely to have an elastic demand?
Salt
Diamonds
Gasoline
Bread
#11
Which of the following is NOT a determinant of demand elasticity?
Availability of substitutes
Necessity of the good
Proportion of income spent on the good
Time period considered
#12
What is the price elasticity of demand for perfectly inelastic goods?
Equal to zero
Equal to one
Greater than one
Indeterminate
#13
What is the value of price elasticity of demand when demand is unitary elastic?
Equal to zero
Equal to one
Less than one
Indeterminate
#14
In which scenario would the cross-price elasticity of demand be positive?
Between complementary goods
Between substitute goods
Between normal and inferior goods
Between unrelated goods
#15
What is the concept of price discrimination?
Charging different prices to different customers based on their willingness to pay.
Setting prices at the level of marginal cost.
Offering discounts to loyal customers.
Maintaining a constant price regardless of market conditions.
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