Principles of Microeconomics - Demand and Consumer Behavior Quiz
Test your knowledge on determinants of demand, price elasticity, consumer surplus, and more in this microeconomics quiz.
#1
Which of the following is NOT a determinant of demand?
Income of consumers
Price of the product
Tastes and preferences of consumers
Cost of production for firms
#2
When the price of a good increases, what happens to its quantity demanded, according to the law of demand?
Increases
Decreases
Remains unchanged
Fluctuates randomly
#3
Which of the following is the correct formula for price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Absolute change in quantity demanded / Absolute change in price
Absolute change in price / Absolute change in quantity demanded
#4
If the cross-price elasticity of demand for two goods is positive, it means that:
The two goods are substitutes
The two goods are complements
There is no relationship between the two goods
The demand for one good is perfectly inelastic
#5
Which of the following best describes the income effect in economics?
The change in quantity demanded due to a change in income
The change in demand due to a change in income
The change in purchasing power due to a change in price
The change in consumer preferences due to a change in income
#6
What happens to the demand curve for a normal good when income increases?
It shifts to the left
It shifts to the right
It remains unchanged
It becomes steeper
#7
What is the primary assumption made about consumer behavior in the theory of consumer choice?
Consumers always maximize utility
Consumers have perfect knowledge of all available goods
Consumers always make rational decisions
Consumers never experience changes in preferences
#8
Which of the following is an example of a normal good?
Luxury cars
Generic medicines
Ramen noodles
Used clothing
#9
What is the significance of a Giffen good in economics?
It follows the law of demand
It violates the law of demand
It has a perfectly elastic demand curve
It has a perfectly inelastic demand curve
#10
Which of the following is a characteristic of a perfectly elastic demand curve?
The price elasticity of demand is greater than one
The price elasticity of demand is equal to one
The price elasticity of demand is less than one
The price elasticity of demand is infinity
#11
What does it mean if the price elasticity of demand for a good is inelastic?
Consumers are very responsive to price changes
Consumers are somewhat responsive to price changes
Consumers are not very responsive to price changes
Consumers do not respond at all to price changes
#12
If the price elasticity of demand for a good is unitary elastic, what happens to total revenue when the price decreases?
Total revenue increases
Total revenue decreases
Total revenue remains unchanged
Total revenue cannot be determined
#13
Which of the following is true about a Veblen good?
The demand for a Veblen good decreases as income increases
The demand for a Veblen good increases as income decreases
The demand for a Veblen good decreases as its price decreases
The demand for a Veblen good increases as its price increases
#14
In economics, what is the significance of the concept of consumer surplus?
It represents the extra production that a firm can achieve
It represents the difference between the maximum price a consumer is willing to pay and the price they actually pay
It measures the profit a firm makes from selling a good
It measures the total utility gained from consuming a good
Sign In to view more questions.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Economics
Report