Principles of Demand Analysis Quiz

Test your understanding of demand in economics with questions on demand curve shifts, elasticity, determinants, and more. Explore microeconomics concepts now!

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Which of the following best defines demand in economics?

The quantity of a good or service that consumers are willing and able to buy at a given price over a specific period.

The quantity of a good or service that producers are willing and able to supply at a given price over a specific period.

The amount of money consumers are willing to spend on a good or service.

The total amount of a good or service available in the market.

What does the law of demand state?

As price decreases, quantity demanded decreases.

As price increases, quantity demanded increases.

As price decreases, quantity demanded increases.

As price increases, quantity demanded decreases.

What is the law of demand?

As price decreases, quantity demanded decreases.

As price increases, quantity demanded decreases.

As price decreases, quantity demanded increases.

As price increases, quantity demanded increases.

Which of the following factors does NOT affect demand?

Price of the product itself.

Income of consumers.

Price of related goods.

Cost of production.

Which of the following factors can cause a shift in the demand curve?

Changes in income.

Changes in the price of substitutes.

Changes in tastes and preferences.

All of the above.

What is the income elasticity of demand?

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

A measure of how much the quantity demanded of a good responds to a change in consumer income.

A measure of how much the quantity demanded of a good responds to a change in the price of a substitute good.

A measure of how much the quantity demanded of a good responds to a change in the price of a complementary good.

What is the price elasticity of demand?

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

A measure of how much the quantity demanded of a good responds to a change in consumer income.

A measure of how much the quantity demanded of a good responds to a change in the price of a substitute good.

A measure of how much the quantity demanded of a good responds to a change in the price of a complementary good.

Which of the following is NOT a determinant of demand?

Income

Price of the product itself

Tastes and preferences

Price of inputs

Which of the following is an example of a complementary good?

Peanut butter and jelly

Tea and coffee

Butter and margarine

Beef and chicken

#10

What is the difference between a movement along the demand curve and a shift in the demand curve?

A movement along the demand curve is caused by a change in price, while a shift in the demand curve is caused by a change in a non-price determinant of demand.

A movement along the demand curve is caused by a change in a non-price determinant of demand, while a shift in the demand curve is caused by a change in price.

A movement along the demand curve and a shift in the demand curve are the same thing.

A movement along the demand curve is caused by a change in quantity demanded, while a shift in the demand curve is caused by a change in demand.

#11

What does a perfectly elastic demand curve look like?

A vertical line.

A horizontal line.

A downward-sloping line.

An upward-sloping line.

#12

What is the difference between individual demand and market demand?

Individual demand refers to the quantity of a good or service demanded by one person, while market demand refers to the total quantity demanded by all consumers in the market at a given price.

Individual demand refers to the total quantity of a good or service demanded by all consumers in the market, while market demand refers to the quantity demanded by one person.

Individual demand and market demand are the same thing.

Individual demand refers to the demand for goods, while market demand refers to the demand for services.

#13

What is the cross-price elasticity of demand?

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

A measure of how much the quantity demanded of a good responds to a change in consumer income.

A measure of how much the quantity demanded of a good responds to a change in the price of a substitute good.

A measure of how much the quantity demanded of a good responds to a change in the price of a complementary good.

#14

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.

Principles of Demand Analysis Quiz

Which of the following best defines demand in economics?

What does the law of demand state?

What is the law of demand?

Which of the following factors does NOT affect demand?

Which of the following factors can cause a shift in the demand curve?

What is the income elasticity of demand?

What is the price elasticity of demand?

Which of the following is NOT a determinant of demand?

Which of the following is an example of a complementary good?

What is the difference between a movement along the demand curve and a shift in the demand curve?

What does a perfectly elastic demand curve look like?

What is the difference between individual demand and market demand?

What is the cross-price elasticity of demand?

What is the formula for price elasticity of demand?

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