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Demand Practice II

Practice the important concepts from the lesson.

  1. Which of the following choices best describes demand?
    1. a want but not a need
    2. The correct answer is the desire (willingness) and ability to buy a product.
    3. a measure of the satisfaction one gets from a good or service
    4. spending done by business on plants and equipmen

    Answer: B. the desire (willingness) and ability

  2. If the Law of Demand is in effect, when the price of a good is lowered, demand ________ Blank.
    1. increases
    2. decreases
    3. stays the same
    4. coudl either increase or decrease

    Answer: A. increases

  3. A change in quantity demanded is ________ Blank.
    1. the amount consumers would buy if prices increased
    2. a table recording the number of units of a good or service demanded
    3. the desire to purchase a certain number of units of a good or service at a given price
    4. a change in the quantity of a product purchased in response to a change in price

    Answer: D. a change in the quantity of a product purchased in response to a change in price

  4. A change in demand means that ________ Blank.
    1. manufacturers can increase production by hiring more workers
    2. consumers are willing to buy different amounts of a product at the same prices
    3. prices remain constant for a long period of time
    4. increasing the quality of a product will lead to more sales

    Answer: B. consumers are willing to buy different amounts of a product at the same prices

  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?
    1. individual supply schedule
    2. demand curve
    3. individual demand curve
    4. supply schedule

    Answer: C. individual demand curve

  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 ____.
    1. diminishing marginal utility
    2. the Law of Demand
    3. demand
    4. demand elasticity

    Answer: A. diminishing marginal utility

  7.  As the price goes ________ Blank the quantity demanded goes ________ Blank.
    1. up, nowhere but instead stays the same
    2. up, up
    3. down, down
    4. down, up

    Answer: D. down, up

  8. The best example of complements would be ________ Blank.
    1. shoes and rain boots
    2. Pepsi and Coca Cola
    3. peanut butter and jelly
    4. Burger King and McDonalds

    Answer: C. peanut butter and jelly

  9. Which of the following does NOT cause a change in demand?
    1. a change in location
    2. a change in taste
    3. a change in income
    4. a change in the number of buyers

    Answer: A. a change in location

  10. A change in consumer expectations and consumer taste changes what for the product?
    1. change in quantity demanded
    2. change in demand
    3. change in supply
    4. change in quantity supplied

    Answer: B. change in demand

You've completed this practice activity!