The law of demand states that, ceteris paribus,
A) Price and quantity demanded are inversely related
B) Price and quantity demanded are directly related
C) Price and demand are unrelated
D) Price affects supply but not demand
If the price of a good increases, what happens to the quantity demanded for that good?
A) It increases
B) It decreases
C) It remains the same
D) It becomes inelastic
Which of the following is a determinant of demand?
A) Production technology
B) Consumer income
C) Input prices
D) Supply of the good
According to the law of demand, when the price of a good falls, the quantity demanded:
A) Decreases
B) Increases
C) Remains unchanged
D) Becomes inelastic
If consumer preferences change in favor of a good, what will happen to the demand for that good?
A) It will decrease
B) It will increase
C) It will remain unchanged
D) It will become inelastic
What does a change in the price of a good cause in terms of demand?
A) A shift in the demand curve
B) A movement along the demand curve
C) An increase in quantity supplied
D) A decrease in quantity supplied
Which of the following is a factor that can shift the demand curve?
A) Changes in the price of the good
B) Changes in consumer income
C) Changes in the quantity supplied
D) Changes in government regulations
A decrease in the price of a complementary good will cause:
A) An increase in demand for the related good
B) A decrease in demand for the related good
C) A shift to the right of the demand curve
D) No effect on demand
What happens to the demand for a product if consumers expect its price to increase in the future?
A) It decreases
B) It increases
C) It becomes perfectly elastic
D) It remains the same
When the price of a good falls, and the demand for its substitute rises, what happens to the demand for the original good?
A) It decreases
B) It increases
C) It remains the same
D) It becomes perfectly inelastic
What effect does a rise in consumer income typically have on the demand for normal goods?
A) It decreases demand
B) It increases demand
C) It has no effect on demand
D) It causes a shift in the supply curve
When the price of a good falls, which of the following is the result?
A) The demand curve shifts left
B) The demand curve shifts right
C) Quantity demanded increases
D) Quantity demanded decreases
What does a rightward shift in the demand curve indicate?
A) An increase in demand
B) A decrease in demand
C) A decrease in quantity demanded
D) A decrease in price
An increase in the price of a substitute good will cause:
A) A decrease in the demand for the good
B) An increase in the demand for the good
C) A shift in the supply curve
D) No effect on the demand curve
What does a change in taste or preference typically lead to in terms of demand?
A) A movement along the demand curve
B) A shift in the demand curve
C) A movement along the supply curve
D) A shift in the supply curve
Which of the following is an example of a complementary good?
A) Coffee and tea
B) Pepsi and Coke
C) Cars and gasoline
D) T-shirts and shoes
When demand for a product decreases, what happens to the demand curve?
A) It shifts to the right
B) It shifts to the left
C) It remains unchanged
D) It becomes vertical
Which of the following best describes the law of demand?
A) As price rises, quantity demanded rises
B) As price rises, quantity demanded falls
C) As price falls, quantity demanded falls
D) Price has no effect on demand
A demand curve slopes:
A) Downward from left to right
B) Upward from left to right
C) Vertical
D) Horizontal
What will happen to the demand for inferior goods if consumer income increases?
A) It increases
B) It decreases
C) It remains unchanged
D) It becomes elastic
Which of the following would most likely increase demand for a good?
A) A decrease in consumer income
B) An increase in the price of a substitute
C) A decrease in consumer preferences for the good
D) A rise in interest rates
What is the effect of an increase in consumer preferences for a good?
A) It causes a decrease in demand
B) It causes a shift to the left in the demand curve
C) It causes an increase in demand
D) It causes no change in demand
Which of the following will likely cause the demand curve to shift to the left?
A) A rise in income for normal goods
B) A decrease in the price of substitutes
C) An increase in consumer preferences
D) A decrease in consumer income for inferior goods
An increase in the price of a good will cause:
A) A rightward shift in the demand curve
B) A leftward shift in the demand curve
C) A decrease in quantity demanded
D) A decrease in price
When the price of a good rises, and the quantity demanded falls, this demonstrates:
A) The law of supply
B) The law of demand
C) A shift in supply
D) A shift in demand
What happens to demand when a product becomes fashionable?
A) Demand increases
B) Demand decreases
C) Demand becomes inelastic
D) Demand becomes elastic
Which factor would likely NOT affect the demand for a good?
A) Changes in the price of related goods
B) Changes in production costs
C) Changes in consumer income
D) Changes in advertising strategies
