Question 1

Which of the following is NOT an external factor that shifts the demand curve?

Accepted Answer

A change in the price of the good itself

Question 2

Suppose the price of a substitute good increases. What is the expected effect on the demand curve for the original good?

Accepted Answer

The demand curve shifts to the right

Question 3

If a good is an inferior good, what happens to its demand when consumer income increases?

Accepted Answer

Demand decreases

Question 4

Given the demand schedule in the image, what is the quantity demanded when the price is $30?

Accepted Answer

$$60$$

Question 5

Which equation best represents the demand curve shown in the image, assuming a linear relationship between price $$P$$ and quantity $$Q$$?

Accepted Answer

$$P = 60 - 0.3Q$$

Question 6

If the price of a complementary good increases, what happens to the demand for the original good?

Accepted Answer

Demand decreases

Question 7

Which of the following best describes a normal good?

Accepted Answer

Demand increases as income increases

Question 8

If the number of consumers in a market increases, what is the likely effect on the demand curve?

Accepted Answer

The demand curve shifts to the right

Question 9

Suppose the price of gasoline rises due to increased demand. What is the most likely short-term effect on the quantity demanded, according to the law of demand?

Accepted Answer

Quantity demanded decreases

Question 10

If the demand for a product is positively related to changes in income, what type of good is it?

Accepted Answer

Normal good

Question 11

A new health study increases the popularity of a certain food. What is the expected effect on the demand curve for that food?

Accepted Answer

The demand curve shifts to the right

Question 12

If the price of a good falls from $$40 to$$ $$30$$, what is the change in quantity demanded according to the demand schedule in the image?

Accepted Answer

$$60 - 40 = 20$$

Question 13

Which of the following scenarios would cause a movement along the demand curve rather than a shift of the demand curve?

Accepted Answer

A decrease in the price of the good

Question 14

If the opportunity cost of buying a product increases, what is the likely effect on demand?

Accepted Answer

Demand decreases

Question 15

Which of the following best explains why the demand curve is downward sloping?

Accepted Answer

As price decreases, quantity demanded increases due to the substitution and income effects

Supply and Demand: Demand Curves, Shifters, and Related Goods

Study Guide - Practice Questions

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