Question 1

Given the demand schedule in the image, what is the quantity demanded when the price is $4?

Accepted Answer

$$5$$

Question 2

Which of the following best describes the relationship between price and quantity demanded as shown in the demand schedule?

Accepted Answer

As price increases, quantity demanded decreases.

Question 3

If the price falls from $$6 to$$ $$4$$, what is the change in quantity demanded according to the demand schedule?

Accepted Answer

$$3$$ units increase

Question 4

Which point on the graph would represent the highest price and lowest quantity demanded?

Accepted Answer

Point a

Question 5

Suppose the demand curve shifts to the right. What could be a possible reason for this shift?

Accepted Answer

An increase in the price of a substitute good

Question 6

If the price is set at $$5$$, what is the corresponding quantity demanded according to the table?

Accepted Answer

$$2$$

Question 7

Which of the following equations best represents the demand curve if the relationship between price ($$P) $$and quantity ($$Q) is $$linear and based on the table?

Accepted Answer

$$P = 8 - Q$$

Question 8

If the price decreases from $$5 to$$ $$2$$, what is the percentage increase in quantity demanded?

Accepted Answer

$$200\%$$

Question 9

Which of the following statements is true about the demand curve shown in the graph?

Accepted Answer

It is downward sloping, indicating an inverse relationship between price and quantity demanded.

Question 10

If a new technology makes production cheaper and increases supply, what will likely happen to the equilibrium price and quantity in this market?

Accepted Answer

Equilibrium price decreases, equilibrium quantity increases.

Question 11

If the demand for a product is perfectly inelastic, how would the demand curve appear on the graph?

Accepted Answer

A vertical line

Question 12

Suppose the government imposes a price floor above the equilibrium price. What is the likely result in this market?

Accepted Answer

A surplus

Question 13

If the price of a good increases from $$3 to$$ $$6$$ and the quantity demanded decreases from $$6 to$$ $$1$$, what is the slope of the demand curve?

Accepted Answer

$$-5/3$$

Question 14

Which of the following would NOT cause a shift in the demand curve?

Accepted Answer

A change in the price of the good itself

Question 15

If the demand curve is given by $$P = 8 - Q$$, what is the price when quantity demanded is $$3$$?

Accepted Answer

$$5$$

Understanding the Demand Curve: Graphs of Two Variables

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