Title: QUIZ: Demand -- Economic Lowdown Audio Series
Course: Andria Testing FRE2 > Section: Demand -- Economic Lowdown Audio Series

Q: What are the two components of demand?
- Willingness to sell and money supply
- Price and quantity
- Willingness to purchase and ability to pay
- Quality and quantity
A: Willingness to purchase and ability to pay

Q: What does the law of demand state?
- As the price of a good or service increases, the quantity of that good or service demanded decreases.
- As the price of a good or service increases, the quantity of that good or service demanded increases.
- As the demand of a good or service decreases, the supply of that good or service increases.
- As the demand of a good or service increases, the supply of that good or service decreases.
A: As the price of a good or service increases, the quantity of that good or service demanded decreases.

Q: What type of relationship is there between price and quantity?
- Direct
- No relationship
- Inverse
- Parabolic
A: Inverse

Q: The demand curve usually __________.
- is horizontal
- is vertical
- slopes upward
- slopes downward
A: slopes downward

Q: An increase in the number of consumers in the market for chocolate would __________.
- cause the demand curve to shift to the right
- cause the demand curve to shift to the left
- cause no movement of the demand curve
- cause the quantity demanded to decrease
A: cause the demand curve to shift to the right

Q: If suddenly the price of a complementary good, such as peanut butter, doubled, what might happen to the demand curve for chocolate?
- The curve would shift to the right.
- The curve would shift to the left.
- The curve would not move.
- The curve would move down.
A: The curve would shift to the left.