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Demand Multiple Choice

Complete this activity to practice the important concepts from the lesson.

  1. The extent to which a change in price causes a change in the quantity demanded is called _______blank.
    1. the substitution effect
    2. marginal utility
    3. the market supply schedule
    4. demand elasticity

    Answer: d. demand elasticity

  2. If demand for an item decreases with a small increase in its price, demand for that item is _______blank.
    1. inelastic
    2. unit elastic
    3. perfectly inelastic
    4. elastic

    Answer: d. elastic

  3. If a product has many substitutes, demand for that product tends to be _______blank.
    1. inelastic
    2. elastic
    3. unit elastic
    4. perfectly inelastic

    Answer: b. elastic

  4. Demand is _______blank when a change in price causes a proportional change in demand.
    1. elastic
    2. inelastic
    3. unit elastic
    4. perfectly inelastic

    Answer: c. unit elastic

  5. According to the total expenditures test, price − _______blank = total expenditures.
    1. quantity
    2. elasticity
    3. demand
    4. sales

    Answer: a. quantity

  6. When the price of oranges increases, _______blank.
    1. the demand for oranges increases
    2. the demand for oranges decreases
    3. the quantity of oranges demanded decreases
    4. the demand for oranges will not change

    Answer: c. the quantity of oranges demanded decreases

  7. If we make more money, we will purchase more _______blank goods.
    1. normal goods
    2. inferior goods
    3. elastic goods
    4. inelastic goods

    Answer: a. normal goods

  8. When our income decreases, we purchase more _______blank goods because they are less costly.
    1. inelastic goods
    2. elastic goods
    3. normal goods
    4. inferior goods

    Answer: d. inferior goods

  9. Which of these is the BEST example of an inferior good?
    1. used good
    2. new good
    3. elastic good
    4. inelastic good

    Answer: a. used good

  10. Which of these is the BEST example of a normal good?
    1. Dr. Check cola
    2. a sweater from Goodwill
    3. movie tickets
    4. a bus ticket

    Answer: c. movie tickets

You've completed this activity!