Online Test — Demand
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
Demand for a good must be backed by:
Desire only
Ability and willingness to pay
Advertising
A government order
Explanation: Demand needs desire plus ability and willingness to pay.
Question 2 of 15
The total demand of all consumers in a market is:
Individual demand
Market demand
Joint demand
Derived demand
Explanation: The sum of all consumers' demand is market demand.
Question 3 of 15
A table showing quantity demanded at different prices is a:
Demand schedule
Demand curve
Budget line
Supply schedule
Explanation: That table is the demand schedule.
Question 4 of 15
The demand curve normally slopes:
Upward
Downward
Horizontally
Vertically
Explanation: Price and quantity demanded are inversely related.
Question 5 of 15
The law of demand holds 'other things remaining':
Changing
Constant
Zero
Negative
Explanation: Ceteris paribus — other things remaining constant.
Question 6 of 15
When price rises, quantity demanded usually:
Rises
Falls
Stays the same
Doubles
Explanation: Higher price reduces quantity demanded.
Question 7 of 15
Tea and coffee are examples of:
Complements
Substitutes
Giffen goods
Unrelated goods
Explanation: Goods that replace each other are substitutes.
Question 8 of 15
Car and petrol are examples of:
Substitutes
Complements
Inferior goods
Giffen goods
Explanation: Goods used together are complements.
Question 9 of 15
Which is a determinant of demand other than the good's own price?
Income of the consumer
The colour of the shop
The day of the week only
The seller's name
Explanation: Income is a key determinant of demand.
Question 10 of 15
An exception to the law of demand is a:
Normal good
Giffen good
Substitute
Complement
Explanation: Giffen goods are a classic exception to the law of demand.
Question 11 of 15
A change in the good's own price causes a:
Movement along the demand curve
Shift of the demand curve
New demand schedule only
No change
Explanation: Own-price changes move us along the same curve.
Question 12 of 15
A fall in price causing more to be demanded is called:
Contraction
Extension (expansion)
Increase in demand
Decrease in demand
Explanation: A downward movement due to a price fall is an extension of demand.
Question 13 of 15
A change in income or tastes causes a:
Movement along the curve
Shift of the demand curve
Vertical curve
No effect
Explanation: Non-price determinants shift the whole curve.
Question 14 of 15
A rightward shift of the demand curve indicates:
Decrease in demand
Increase in demand
Contraction
No change
Explanation: Right shift = more demanded at each price = increase.
Question 15 of 15
More demanded at a higher price would be shown by:
A downward demand curve
An upward demand curve (exception)
A horizontal line
The budget line
Explanation: Exceptions to the law give an upward-sloping demand curve.