#1
Which of the following is NOT a determinant of market demand?
Price of the good
Income of consumers
Cost of production
Tastes and preferences
#2
If the price of a good increases, what happens to its quantity demanded?
Increases
Decreases
Remains constant
Not enough information to determine
#3
Which of the following is a non-price determinant of demand?
Price of the good itself
Income of consumers
Prices of related goods
Expectations about future prices
#4
What does the demand curve represent?
The quantity demanded at different prices
The quantity supplied at different prices
The relationship between price and quantity supplied
The relationship between price and quantity demanded
#5
Which of the following is an example of a durable good?
#6
Which law states that there is an inverse relationship between price and quantity demanded?
Law of Supply
Law of Demand
Law of Equilibrium
Law of Diminishing Marginal Utility
#7
What is the formula for price elasticity of demand?
Percentage change in quantity demanded divided by percentage change in price
Percentage change in price divided by percentage change in quantity demanded
Change in quantity demanded multiplied by change in price
Change in price multiplied by change in quantity demanded
#8
What is the income elasticity of demand for a normal good?
Positive
Negative
Zero
Can be positive or negative
#9
Which of the following is an example of a complementary good?
Peanut butter and jelly
Coffee and tea
Butter and margarine
Beef and chicken
#10
Which of the following is a measure of the responsiveness of quantity demanded to a change in price?
Price elasticity of demand
Income elasticity of demand
Cross-price elasticity of demand
Price elasticity of supply
#11
If the cross-price elasticity of demand for two goods is positive, what can we infer about their relationship?
They are substitutes
They are complements
There is no relationship
Not enough information to determine
#12
What is the effect of a subsidy on the demand curve?
Shifts the demand curve to the right
Shifts the demand curve to the left
Creates a movement along the demand curve
No effect on the demand curve
#13
Which of the following statements is true regarding the demand curve for a Giffen good?
It slopes upward
It slopes downward
It is a horizontal line
It is a vertical line
#14
What is the relationship between price elasticity of demand and total revenue?
As price elasticity of demand increases, total revenue decreases
As price elasticity of demand increases, total revenue increases
There is no relationship between price elasticity of demand and total revenue
Total revenue is always constant
#15
Which of the following factors does NOT affect the price elasticity of demand?
Availability of substitutes
Necessity of the good
Proportion of income spent on the good
Time period considered