MODULE 5: Supply and Demand: Introduction and Demand

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Tackle the Test: Multiple-Choice Questions

Question

Which of the following would increase demand for a normal good? A decrease in
A.
price
B.
income
C.
the price of a substitute
D.
consumer taste for a good
E.
the price of a complement
Which of the following would increase demand for a normal good? A decrease in
Question

A decrease in the price of butter would most likely decrease the demand for
A.
margarine.
B.
bagels.
C.
jelly.
D.
milk.
E.
syrup.
A decrease in the price of butter would most likely decrease the demand for
Question

If an increase in income leads to a decrease in demand, the good is
A.
a complement.
B.
a substitute.
C.
inferior.
D.
abnormal.
E.
normal.
If an increase in income leads to a decrease in demand, the good is
Question

Which of the following will occur if consumers expect the price of a good to fall in the coming months?
A.
The quantity demanded will rise today.
B.
The quantity demanded will remain the same today.
C.
Demand will increase today.
D.
Demand will decrease today.
E.
No change will occur today.
Which of the following will occur if consumers expect the price of a good to fall in the coming months?
Question

Which of the following will increase the demand for disposable diapers?
A.
a new “baby boom”
B.
concern over the environmental effect of landfills
C.
a decrease in the price of cloth diapers
D.
a move toward earlier potty training of children
E.
a decrease in the price of disposable diapers
Which of the following will increase the demand for disposable diapers?