Question: The law of demand states that

a) more will be purchased at low prices than at high ones

b) less will be purchased at low prices that at high ones

c) approximately the same will be purchased at low prices than at higher prices

d) all people have the ability, desire, and willingness to buy

Answer: a) more will be purchased at low prices than at high ones

Question: The demand curve is always

a) upward sloping b) downward sloping

c) level d) irregular

Answer: b) downward sloping

Question: Buying only one instead of two sodas at lunch time describes what concept?

a) demand b) consumerism

c) marginal utility d) diminishing marginal utility

Answer: d) diminishing marginal utility

Question: All of the following must exist for there to be demand EXCEPT

a) desire to buy a product

b) producers to sell a product

c) an ability to buy a product

d) a willingness to buy a product

Answer: b) producers to sell a product

Question:

Answer: d) it shows the demand for a product over time rather than at a given point in time

Question: How does the demand curve respond to and increase in demand?

a) the curve shifts left

b) the curve shifts right

c) there is movement along the curve

d) there is no change in the curve

Answer: b) the cruve shifts right

Question: All of the following would cause a change in demand of a product EXCEPT

a) a decrease in consumer income

b) the substitution effect

c) changing consumer tastes

d) an increase in the price of related products

Answer: b) the substitution effect

Question: All of the following are examples are complements EXCEPT

a) butter and margarine

b) flashlights and batteries

c) peanut butter and jelly

d) cameras and film

Answer: a) butter and margarine

Question: A change in the number of consumers can cause

a) the demand curve to shift

b) a substitution effect

c) the market demand to shift

d) prices to fall

Answer: a) the demand curve to shift

Question: Total expenditures are determined by

a) multiplying the prices of a product by the quantity demanded

b) measuring the elasticity of a product

c) dividing the price of the product by demand

d) dividing the demand for the product by its price

Answer: a) multiplying the price of a product by the quantity demanded