Practice the important concepts from the lesson.

 

1) Which of the following choices best describes demand?

a. a want but not a need

b. the desire, ability, and willingness to buy a product

c. a measure of the satisfaction one gets from a good or service

d. spending done by business on plants and equipment

answer: B

 

2) If the Law of Demand is in effect, when the price of a good is lowered, demand ____.

a. increases

b. decreases

c. stays the same

d. could either increase or decrease

answer: A

 

3) A change in quantity demanded is ____.

a. the amount consumers would buy if prices increased

b. a table recording the number of units of a good or service demanded

c. the desire to purchase a certain number of units of a good or service at a given price

d. a change in the quantity of a product purchased in response to a change in price

answer: D

 

4) A change in demand means that ____.

a. manufacturers can increase production by hiring more workers

b. consumers are willing to buy different amounts of a product at the same prices

c. prices remain constant for a long period of time

d. increasing the quality of a product will lead to more sales

answer: B

 

5) What is a graph that shows the quantity of demand for a certain individual at each price that might be used in the market at a given time?

a. individual supply schedule

b. demand curve

c. individual demand curve

d. supply schedule

answer: C

 

6) We buy things because we feel the product is useful to us, but as we use more and more of a product we experience ____.

a. diminishing marginal utility

b. the Law of Demand

c. demand

d. demand elasticity

answer: A

 

7) As the price goes ___ the quantity demanded goes ___.

a. up, nowhere but instead stays the same

b. up, up

c. down, down

d. down, up

answer: D

 

8)The best example of compliments would be ___.

a. shoes and rain boots

b. Pepsi and Coca Cola

c. peanut butter and jelly

d. Burger King and McDonalds

answer: C

 

9) Which of the following does NOT cause a change in demand?

a. a change in location

b. a change in taste

c. a change in income

d. a change in the number of buyers

answer: A

 

10) A change in consumer expectations and consumer taste changes what for the product?

a. change in quantity demanded

b. change in demand

c. change in supply

d. change in quantity supplied

answer: B