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MCQs On Demand Curve - Assignment

The document contains 23 multiple choice questions about concepts related to demand, the law of demand, demand curves, substitutes and complements. The questions cover how demand responds to changes in price, income, and prices of related goods. Students are asked to identify shifts and movements along a demand curve in a graph based on different scenarios involving changes in economic factors.

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Alviya Fatima
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309 views

MCQs On Demand Curve - Assignment

The document contains 23 multiple choice questions about concepts related to demand, the law of demand, demand curves, substitutes and complements. The questions cover how demand responds to changes in price, income, and prices of related goods. Students are asked to identify shifts and movements along a demand curve in a graph based on different scenarios involving changes in economic factors.

Uploaded by

Alviya Fatima
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment

Attempt the multiple choice questions given below:

1. The quantity demanded is

A) the amount of a good that consumers plan to purchase at a particular price.

B) independent of the price of the good.

C) independent of consumers' buying plans.

D) always equal to the equilibrium quantity.

2. The law of demand states that, other things remaining the same, the higher the price of a good,
the

A) smaller is the demand for the good.

B) smaller is the quantity of the good demanded.

C) larger is the quantity of the good demanded.

D) larger is the demand for the good.

3. The law of demand implies that, other things remaining the same,

A) as the demand for cheeseburgers increases, the price of a cheeseburger will fall.

B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease.

C) as income increases, the quantity of cheeseburgers demanded will increase.

D) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase.

4. Which of the following is consistent with the law of demand?

A) A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded.

B) An increase in the price of a soda causes a decrease in the quantity of soda demanded.

C) An increase in the price of a tape causes an increase in the quantity of tapes demanded.

D) A decrease in the price of juice causes no change in the quantity of juice demanded.

5. The law of demand implies that if nothing else changes, there is


A) a linear relationship between price of a good and the quantity demanded.

B) a positive relationship between the price of a good and the quantity demanded.

C) a negative relationship between the price of a good and the quantity demanded.

D) an exponential relationship between price of a good and the quantity demanded.

6. Which of the following influences people's buying plans and varies moving along a demand
curve?

A) preferences B) the price of the good C) income D) the prices of related


goods

The law of demand implies that demand curves

A) shift leftward whenever the price rises.

B) shift rightward whenever the price rises.

C) slope down.

D) slope up.

7. A drop in the price of a compact disc shifts the demand curve for prerecorded tapes leftward.
From that you know compact discs and prerecorded tapes are

A) normal goods. B) substitutes. C) inferior goods. D) complements.

8. A substitute is a good

of higher quality than another good.

B) that is not used in place of another good.

C) that can be used in place of another good.

D) of lower quality than another good.

9. People buy more of good 1 when the price of good 2 rises. These goods are

A) normal goods. B) complements. C) substitutes. D) inferior goods.

10. Which of the following pairs of goods are most likely substitutes?

A) compact discs and compact disc players


B) lettuce and salad dressing

C) cola and lemon lime soda

D) peanut butter and gasoline

11. Suppose people buy more of good 1 when the price of good 2 falls. These goods are

A) substitutes. B) inferior. C) normal. D) complements

12. The demand for a good increases when the price of a substitute ________ and also increases
when the price of a complement ________.

A) falls; falls B) rises; falls C) rises; rises D) falls; rises

13. If income increases or the price of a complement falls,

A) the supply curve of a normal good shifts leftward.

B) the supply curve of a normal good shifts rightward.

C) the demand curve for a normal good shifts rightward.

D) the demand curve for a normal good shifts leftward.

14. Normal goods are those for which demand decreases as

A) the price of a substitute falls.

B) the price of a complement falls.

C) the good's own price rises.

D) income decreases.

15. A change in which of the following alters buying plans for cars but does NOT shift the demand
curve for cars?

A) a 10 percent decrease in the price of car insurance

B) a 20 percent increase in the price of a car

C) a 5 percent increase in people's income

D) an increased preference for walking rather than driving


16. Which of the following would NOT shift the demand curve for turkey?

A) a change in tastes for turkey

B) a decrease in the price of ham

C) an increase in income

D) a change in the price of a turkey

17. In the figure above, which movement reflects an increase in demand?

A) from point a to point e

B) from point a to point c

C) from point a to point b

D) from point a to point d

18. In the figure above, which movement reflects a decrease in quantity demanded but NOT a
decrease in demand?
A) from point a to point c

B) from point a to point e

C) from point a to point d

D) from point a to point b

19. In the figure above, which movement reflects an increase in the price of a substitute for fruit
snacks?

A) from point a to point d

B) from point a to point e

C) from point a to point b

D) from point a to point c

20. In the figure above, which movement reflects an increase in the price of a complement for fruit
snacks? A) from point a to point b

B) from point a to point d

C) from point a to point e

D) from point a to point c

21. In the figure above, which movement reflects how consumers would react to an increase in the
price of a fruit snack that is expected to occur in the future?

A) from point a to point b

B) from point a to point e

C) from point a to point c

D) from point a to point d

22. In the figure above, which movement reflects an increase in income if fruit snacks are an inferior
good? A) from point a to point d

B) from point a to point c

C) from point a to point b

D) from point a to point e


23. In the figure above, which movement reflects a decrease in population?

A) from point a to point d

B) from point a to point c

C) from point a to point e

D) from point a to point b

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