Demand Quiz

What is diminishing marginal utility?

• Consume as many goods/services as possible

• Satisfaction from consumption decreases over time

• Moderate decline in efficiency

• Morrisey eats 10 tacos at Ruthie's and still isn't full

The 5 determinants of demand are consumer taste and preferences, market size, income, prices of related goods and

• substitute goods

• producer expectations

• TPS reports

• consumer expectations

Define the Law of Demand

• The customer is always right

• direct relationship between price and quantity demanded

• The right to arm bears

• inverse relationship between price and quantity demanded

If Whataburger raises all burger prices from $6 to $10, what will happen?

• People will buy more burgers

• People will buy less burgers

• They will merge with Krusty Burger

• Diminishing Marginal Utility

What is elasticity of demand?

• The extent of a change in quantity demanded due to a price change

• The same as inelastic demand

• Elastic Demand

• The amount of a good or service that a consumer is willing and able to buy

Which good has elastic demand?

• Water

• Bath Soap

• iPhone 11

• Salt

Which good has inelastic demand?

• PS4

• Bath Soap

• X Box One

• A Ferrari

The price of cream cheese has gone up. What will happen to demand for bagels? What is the demand determinant?

• Demand will decrease for bagels; complimentary goods

• Demand will increase for bagels; market size

• Demand will decrease for bagels; substitute goods

• Demand will increase for bagels: Thor loves bagels

The demand curve has shifted to the right for Lysol wipes and spray. What does this mean?

• Demand has decreased for Lysol products

• Demand has stayed the same

• Quantity demanded is equal to quantity supplied

• Demand has increased for Lysol products

The law of demand is a(n) _________ relationship between price and quantity demanded.

• direct

• parallel

• inverse

• cogent