Topic 3 Lessons 1-3 Quiz

What always affects the quantity demanded?

• Supply

• Price

• Advertising

• Technology

The law of demand says that

• if the price for a good goes up, then the quantity supplied of that good will go down

• if the price for a good goes up, then the quantity supplied of that good will go up

• if the price for a good goes up, then the quantity demanded of that good will go up

• if the price for a good goes down, then the quantity demanded of that good will go up

What is the market demand curve only accurate for?

• Predicting future trends

• Current market conditions

• Long-term forecasts

• Seasonal changes

What are consumer expectations?

• Predictions about future prices and income

• Current market prices

• Historical data on goods

• Government regulations

What are changes in demographics?

• Changes in the age, race, gender, and income of a population

• Changes in the weather patterns

• Changes in government policies

• Changes in technology

Give an example of a change in income.

• A salary increase

• A decrease in product price

• A new market trend

• A change in consumer preference

How can shifts in demand occur?

• Changes in consumer income

• Changes in production costs

• Changes in government policy

• Changes in technology

What are substitutes?

• Goods that can replace each other

• Goods that are used together

• Goods that are always in high demand

• Goods that are rarely used

If you buy much less of a good after a price increase, your demand is what?

• Elastic

• Inelastic

• Unitary

• Perfectly inelastic

How does elasticity affect revenue?

• Elasticity has no effect on revenue

• Elasticity determines how revenue changes with price

• Elasticity increases revenue

• Elasticity decreases revenue