Econ Demand Quiz

What is the law of demand?

• There is no relationship between price and quantity demanded

• There is an inverse relationship between price and quantity demanded

• There is a direct relationship between price and quantity demanded

• There is a random relationship between price and quantity demanded

What is the income effect in relation to demand?

• When the price of a product goes down, people buy more of it

• When the price of a product goes up, people buy less of it

• When the price of a product goes down, people buy less of it

• When the price of a product goes up, people buy more of it

What is the law of diminishing marginal utility?

• The additional satisfaction from consuming a product decreases as more of the product is consumed

• The additional satisfaction from consuming a product is unrelated to the quantity consumed

• The additional satisfaction from consuming a product increases as more of the product is consumed

• The additional satisfaction from consuming a product remains constant regardless of the quantity consumed

What causes the demand curve to shift to the right?

• A decrease in demand

• An increase in demand

• A decrease in quantity demanded

• An increase in quantity demanded

What is not a demand shifter?

• Taste and preferences

• Change in price

• Price of related goods

• Number of consumers

What is a complement for cow's milk?

• Cereal

• Almond milk

• Juice

• Water

What is the difference between a change in quantity demanded and a change in demand?

• A change in quantity demanded is caused by a change in price, while a change in demand is caused by one of the five shifters of demand

• A change in quantity demanded is caused by one of the five shifters of demand, while a change in demand is caused by a change in price

• A change in quantity demanded and a change in demand are the same thing

• A change in quantity demanded and a change in demand are unrelated

What is one reason for the downward sloping demand curve?

• The law of supply

• The law of diminishing marginal utility

• The law of equilibrium

• The law of demand