Demand and its Determinants 1 - A Level Economics MCQ Quiz

Question 1/10

Which one of the following would most likely cause the demand curve for a good to shift to the right?

A fall in the price of the good itself. A fall in the price of a substitute good. An increase in the cost of producing the good. A successful advertising campaign for the good. An increase in the price of a complementary good.

Question 2/10

Which one of the following would most likely cause the demand curve for a good to shift to the left?

A rise in the price of the good itself. A decrease in the cost of producing the good. A change in consumer tastes away from the good. An increase in consumer incomes, for a normal good. A fall in the price of a complementary good.

Question 3/10

A rise in the price of a good, with all other factors held constant, causes

a movement along the demand curve to a higher quantity demanded. no change in quantity demanded. a movement along the demand curve to a lower quantity demanded. a shift of the demand curve to the left. a shift of the demand curve to the right.

Question 4/10

A severe frost destroys much of a coffee-growing region's harvest, sharply reducing the supply of coffee beans and raising their price. As a result, coffee roasters buy fewer beans than before. This price rise causes

no change in the demand curve or quantity demanded. a movement along the demand curve for coffee beans to a lower quantity demanded. a movement along the demand curve for coffee beans to a higher quantity demanded. a shift of the demand curve for coffee beans to the right. a shift of the demand curve for coffee beans to the left.

Question 5/10

A demand curve for a good is drawn on the assumption that

price elasticity of demand does not vary along the demand curve. factors affecting demand, other than the good's own price, remain constant. quantity demanded always increases as price falls. the good has no close substitutes. changes in price do not influence supply.

Question 6/10

The diagram below shows the demand curve for coffee.

Supply and demand diagram - Quantity of coffee on the horizontal axis (max 100), Price of coffee on the vertical axis (max 100). Lines shown: demand D (from 10,90 to 90,10).

The demand curve is drawn on the assumption that each of the following remains constant except

the incomes of consumers. the price of tea. the price of coffee. advertising expenditure on coffee. consumer tastes and preferences.

Question 7/10

The ________ effect explains that when the price of a good rises, consumers purchase less because it is now relatively more expensive than an alternative good.

supply income demand inflationary substitution

Question 8/10

The substitution and income effects that occur following a change in a good's price help explain the slope of the

Phillips curve. demand curve for the good. supply curve for the good. aggregate supply curve. production possibility frontier.

Question 9/10

The Law of Diminishing Marginal Utility helps to explain

the shape of the Phillips curve. the income elasticity of demand for a good. the shape of the demand curve. the shape of the supply curve. the amount of tax revenue from an indirect tax.

Question 10/10

As the price of a good rises, following an increase in production costs, a rational consumer will keep buying it only up to the point where the good's marginal utility to them has

fallen below the price. become negative. risen to match the new, higher price. fallen to zero. stayed exactly the same as before.