Froggy Jumps Law of Demand QuizOnline version Test your knowledge about the law of demand with these 10 questions! by sarah ayyad 1 What does the law of demand state? a As the price of a good decreases, the quantity demanded decreases. b As the price of a good increases, the quantity demanded increases. c As the price of a good increases, the quantity demanded decreases. 2 What is the relationship between price and quantity demanded according to the law of demand? a No relationship b Direct c Inverse 3 What is the law of demand based on? a Government regulations b Producer behavior c Consumer behavior 4 What is the demand curve? a A graphical representation of the law of demand b A line showing the supply of a good c A line showing the equilibrium price 5 What is the slope of the demand curve? a Positive b Negative c Zero 6 What are the determinants of demand? a Income, price of related goods, tastes and preferences b Government policies, technology, population c Price, quantity, production costs 7 What is the income effect? a The change in quantity demanded due to a change in purchasing power b The change in quantity demanded due to a change in tastes c The change in quantity demanded due to a change in price 8 What is the substitution effect? a The change in quantity demanded due to a change in relative prices b The change in quantity demanded due to a change in income c The change in quantity demanded due to a change in population 9 What is the law of diminishing marginal utility? a As a person consumes more of a good, the total satisfaction remains constant b As a person consumes more of a good, the additional satisfaction decreases c As a person consumes more of a good, the additional satisfaction increases
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