Demand and Law of Demand Quiz

What are the factors that affect demand?

• The factors that affect demand include the phase of the moon, the number of employees, and the CEO's favorite color

• The factors that affect demand include price, consumer income, consumer preferences, price of related goods, and consumer expectations.

• The factors that affect demand include weather, government regulations, and advertising

• The factors that affect demand include the color of the product, the size of the company, and the location of the store

Demand is the desire to have some good or service and the (a)   to pay for it.

(a)   is one of the major factors that influence demand.

An increase in the price of a good or service will lead to an increase in quantity demanded.

• True

• False

What two factors are necessary for demand?

• a. desire for a good or service and its availability in the market

• b. desire for a good or service and the ability to pay for it

• c. the availability of a good or service and the ability to pay for it

• d. familiarity with a good or service and the desire to pay for it

What is a market demand curve?

• a. a table showing how much of a product an individual is willing and able to buy

• b. a table showing how much of a product a market is willing and able to buy

• c. a graph showing how much of a product an individual is willing and able to buy

• d. a graph showing how much of a product a market is willing and able to buy

How is total revenue calculated?

• a. multiplying price by change in demand

• b. multiplying price by quantity sold

• c. multiplying change in price by change in quantity demanded

• d. multiplying change in price by quantity sold

What do business owners use to gather information for market demand schedules?

• a. income effect

• b. marginal utility

• c. market research

• d. substitution effect

The law of demand refers to how

• demand changes when people's incomes change
• demand changes when the prices of substitutes and complements change
• the quantity demanded changes when the price of the good changes
• the price of the good changes when people's demand for the good changes

A change in the demand for apples could result from any of the following except

• a change in the number of buyers
• increased preferences for fresh fruit consumption for health reasons
• a change in the price of an apple
• a change in the price of a banana