Demand and Supply Quiz

What is demand?

• Desire to buy a product

• Quantity of a good sellers want to sell

• Quantity of a good consumers are willing and able to buy

• The total market supply

The law of demand states that as price increases:

• Demand increases

• Quantity demanded increases

• Quantity demanded decreases

• Demand remains the same

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

• Change in consumer income

• Change in tastes

• Change in the price of the good itself

• Change in population

An increase in demand is shown by:

• A movement up the demand curve

• A movement down the demand curve

• A shift of the demand curve to the right

• A shift of the demand curve to the left

A normal good is one where demand:

• Falls as income rises

• Rises as income rises

• Remains constant as income changes

• Is not related to income

Which factor does not affect demand?

• Price of the product

• Price of complementary goods

• Cost of production

• Consumer income

If two goods are substitutes, an increase in the price of one will:

• Increase demand for the other

• Decrease demand for the other

• Not affect the demand

• Reduce supply of both goods

Which of these is a complementary good to smartphones?

• Tablets

• Smartphone covers

• Bread

• Cars

A fall in the price of petrol is likely to lead to an increase in demand for:

• Bicycles

• Cars

• Electric vehicles

• Air travel

Which of the following causes a decrease in demand?

• Increase in consumer income for normal goods

• Increase in price of substitute goods

• Fall in population

• Fall in price of the good