Principles of Economic Demand Quiz
Explore key concepts like law of demand, elasticity, and determinants of demand & supply with this comprehensive demand economics quiz.
#1
Which of the following is a determinant of demand in economics?
Supply
Price
Weather conditions
Geopolitical events
#2
What is the concept of consumer surplus?
The difference between the price a consumer is willing to pay and the actual price paid.
The extra satisfaction gained from consuming one more unit of a good.
The total revenue obtained from selling a good or service.
The percentage change in quantity demanded divided by the percentage change in income.
#3
Which of the following is a determinant of supply in economics?
Price
Consumer income
Technology
Tastes and preferences
#4
Which of the following is an example of a normal good?
Inferior goods
Luxury goods
Giffen goods
Veblen goods
#5
What does the law of demand state?
As price increases, demand increases.
As price increases, demand decreases.
As price decreases, demand decreases.
As price decreases, demand increases.
#6
Which of the following is an example of complementary goods?
Tea and coffee
Butter and margarine
Cars and gasoline
Peanut butter and jelly
#7
What is the law of diminishing marginal utility?
As the quantity of a good consumed increases, the total utility also increases.
As the quantity of a good consumed increases, the marginal utility decreases.
As the quantity of a good consumed decreases, the total utility also decreases.
As the quantity of a good consumed decreases, the marginal utility increases.
#8
Which of the following is not a determinant of demand elasticity?
Availability of substitutes
Necessity of the good
Time horizon
Market size
#9
Which of the following is a non-price determinant of demand?
Price of the good itself
Consumer preferences
Market supply
Production costs
#10
What is the income effect in economics?
The change in quantity demanded due to a change in consumer income.
The change in quantity demanded due to a change in the price of a related good.
The change in quantity demanded due to a change in taste or preference.
The change in quantity demanded due to a change in the price level.
#11
What is the concept of elasticity of demand?
The responsiveness of quantity demanded to changes in price.
The percentage change in quantity demanded divided by the percentage change in income.
The ratio of quantity demanded to quantity supplied.
The total revenue obtained from selling a good or service.
#12
What is the concept of cross-price elasticity of demand?
The responsiveness of quantity demanded to a change in consumer income.
The responsiveness of quantity demanded to a change in the price of a related good.
The ratio of quantity demanded to quantity supplied.
The percentage change in quantity demanded divided by the percentage change in price.
#13
In the context of demand, what does the term 'Veblen goods' refer to?
Goods with elastic demand.
Goods with inelastic demand.
Goods whose demand decreases with an increase in income.
Goods for which demand increases as their price rises, signaling higher status.
#14
What is the concept of perfectly elastic demand?
The quantity demanded remains constant regardless of changes in price.
The quantity demanded is extremely responsive to changes in price.
The demand curve is vertical.
The demand curve is horizontal.
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