Demand Quiz

An increase in tastes leads to an...

• increase in demand

• decrease in demand

An increase in number of buyers leads to an...

• increase in demand

• decrease in demand

An increase in income of normal goods leads to an...

• increase in demand

• decrease in demand

An decrease in income of inferior goods leads to an...

• increase in demand

• decrease in demand

What is on the x-axis of a demand curve?

• Quantity demanded
• Supply curve
• Price
• Consumer preference

What is on the y-axis of a demand curve?

• Supply
• Quantity
• Consumer Preference
• Price

If the price goes up the substitute goods demand will...

• increase in demand

• decrease in demand

If the price goes up the compliments goods demand will...

• increase in demand

• decrease in demand

What is an inferior good?

• An inferior good is a type of good that is only available in limited quantities.
• An inferior good is a good whose demand increases when consumer incomes decrease.
• An inferior good is a product whose demand decreases when consumer incomes rise.
• An inferior good is a luxury item that is always in high demand.

What is a normal good?

• A normal good is a good whose demand decreases with an increase in consumer income.
• A normal good is a good that is always in high demand regardless of income changes.
• A normal good is a good that consumers buy less of when their income increases.
• A normal good is a good whose demand increases with an increase in consumer income.