Law of Demand Quiz

The law of demand states, with increase in price there is

• decrease in quantity demanded

• increase in quantity demanded

• decreased demand

• increased demand

Which of the following would cause a change in the quantity demanded for a product?

• changing prices of related products

• changing consumer tastes

• increasing consumer income

• decreasing price of product

Increase in demand can occur due to:

• Increase in income of the consumer

• Decrease in price of the complementary good

• Increase in price of the substitutes

• All of these

Violation of Law of Demand occurs when:

• (a) Negative income effect is greater than substitution effect

• (b) Negative income effect is less than substitution effect

• (c) Income effect is negative

• (d) Substitution effect is negative

Movement along the demand curve illustrates

• shift in quantity demanded

• complement effect

• change in quantity demanded

• income effect

Increase in demand is shown by demand curve when

• the curve shifts right

• the curve shifts left

• movement along the curve there is no change

• movement along the curve

The demand curve is always

• level

• irregular

• upward sloping

• downward sloping

Which of the following is a complement product to peanut butter?

• Sugar

• Jelly

• Mustard

• Soda

The Law of Demand is measured from the perspective of

• Consumer

• Shopkeeper

• Wholesaler

• Manufacturer

Goods for which demand goes down when income goes up are called

• Public Goods

• Inferior Goods

• Normal Goods

• Private Goods