2. Supply and Demand

Demand Fundamentals — Quiz

Test your understanding of demand fundamentals with 5 practice questions.

Practice Questions

Question 1

Which of the following describes the relationship between the price of a good and the quantity consumers are willing and able to purchase, assuming all other factors are constant?

Question 2

If the price of beef increases significantly, and consumers start buying more chicken instead, this illustrates the effect of a change in the price of a:

Question 3

A local bakery observes that when the average income of its customers increases, the demand for its specialty cakes (a normal good) also increases. This is an example of how which determinant of demand affects the demand curve?

Question 4

Which of the following would cause a shift to the left in the demand curve for a product?

Question 5

Consider the market for gasoline. If a new, highly efficient electric car becomes significantly cheaper and more widely available, what is the most likely effect on the demand for gasoline?