Demand and Supply Quiz

Which of the following would cause a movement along the demand curve?

• A change in income

• A change in consumer preference

• A change in the price of the good itself

• A change in the price of a substitute

The law of demand states that, ceteris paribus:

• Demand increases when price increases

• Demand and price are positively related

• As price increases, quantity demanded decreases

• Quantity demanded is unaffected by price

Which of the following is a determinant of demand?

• Technology

• Price of inputs

• Consumer income

• Number of sellers

If two goods are complements, a decrease in the price of one will:

• Decrease demand for the other

• Not affect the other

• Increase demand for the other

• Cause supply to shift

A shift to the right in the demand curve indicates:

• Decrease in demand

• Increase in demand

• Lower price

• Decrease in supply

Which scenario would cause a leftward shift in the demand curve for coffee?

• Decrease in tea prices

• Increase in income (coffee is a normal good)

• Increase in population

• Coffee becomes more fashionable

If income increases and the demand for instant noodles decreases, instant noodles are considered a:

• Normal good

• Inferior good

• Complementary good

• Luxury good

Which of the following pairs are likely substitutes?

• Tea and sugar

• Bread and butter

• Coffee and tea

• Cars and gasoline

The demand curve typically slopes downward due to:

• Law of supply

• Diminishing marginal utility

• Law of diminishing returns

• Technology changes

An increase in the number of buyers in a market will:

• Shift the supply curve left

• Shift the demand curve right

• Shift the supply curve right

• Cause no change