Question 1

Marketing campaigns are designed to:

Accepted Answer

A)   Cause a movement along the demand curve.
B)   Shift the demand curve for a good to the left.
C)   Cause a movement along the supply curve.
D)   Shift the demand curve for a good to the right.E) B) and D)
F) B) and C)

Question 2

A movement along the demand curve may be caused by:

Accepted Answer

A)   A change in income
B)   A change in advertising
C)   A change in the price of substitutes
D)   A change in priceE) A) and B)
F) A) and C) D

Question 3

When consumers switch to cheaper alternative products this is known as:

Accepted Answer

A)   The income effect
B)   The Giffen effect
C)   The derived effect
D)   The substitution effectE) A) and B)
F) All of the above

Question 4

An increase in the price of a product (if demand is downward sloping)  will lead to:

Accepted Answer

A)   An increase in quantity demanded
B)   An outward shift in demand
C)   An outward shift in supply
D)   A decrease in quantity demandedE) None of the above
F) A) and D) D

Question 5

Utility is maximised when:

Accepted Answer

A)   Total utility is as large as possible.
B)   Total utility is zero.
C)   Marginal utility is zero.
D)   Marginal utility = total utility.E) C) and D)
F) A) and D)

Question 6

The extra satisfaction from consuming another unit of a product is called the ________ _______.

Accepted Answer

The answer of The extra satisfaction from consuming another unit...

Question 7

A decrease in the price of a product (if demand is downward sloping)  will lead to:

Accepted Answer

A)   An increase in quantity demanded
B)   An outward shift in demand
C)   An outward shift in supply
D)   A decrease in quantity demandedE) C) and D)
F) B) and D)

Question 8

An increase in income is unlikely to substantially increase the demand for:

Accepted Answer

A)   Holidays
B)   Milk
C)   Days out
D)   Meals in restaurantsE) A) and B)
F) None of the above

Question 9

An increase in demand for a normal product might occur because of:

Accepted Answer

A)   A rise in the price of a complement
B)   A fall in the price of a substitute
C)   An increase in the number of customers
D)   An increase in supplyE) B) and D)
F) B) and C)

Question 10

An increase in a person's income will have what effect on demand for 'inferior goods'

Accepted Answer

A)   An increase in quantity demanded
B)   An outward shift in demand
C)   An inward shift in demand
D)   A decrease in quantity demandedE) B) and D)
F) A) and C)

Question 11

A hot summer is likely to cause:

Accepted Answer

A)   A movement along the demand curve for sun tan lotion
B)   An outward shift of the demand curve for sun tan lotion
C)   An inward shift of the demand curve for sun tan lotion
D)   None of the aboveE) A) and B)
F) A) and C)

Question 12

If two products are substitutes a decrease in price of one will:

Accepted Answer

A)   Lead to a movement along the demand curve of the other.
B)   Reduce supply of the other.
C)   Shift demand for the other inwards.
D)   Shift demand for the other outwards.E) None of the above
F) C) and D)

Question 13

When consuming a large meal in a buffet restaurant, marginal utility:

Accepted Answer

A)   Will always be positive.
B)   May become negative.
C)   Will always be increasing.
D)   None of the above.E) A) and B)
F) None of the above

Question 14

What would the effect on the demand for product A be, as a result of an increase in the price of a substitute product?

Accepted Answer

A)   An inward shift in the supply curve for A
B)   An inward shift of the demand curve for A
C)   An outward shift of the demand curve for A
D)   A fall in the quantity demanded of product AE) B) and C)
F) All of the above

Question 15

The marginal utility derived from consuming water is ____ and the total utility derived from consuming water is ______.

Accepted Answer

A)   Low, low
B)   High, high
C)   Low, high
D)   High, lowE) C) and D)
F) A) and C)

Question 16

During a recession, customers tend to:

Accepted Answer

A)   Increase their effective demand for goods and services.
B)   Increase their expenditure on goods and services.
C)   Decrease their effective demand for goods and services.
D)   None of the above.E) A) and D)
F) A) and B)

Question 17

If the quantity demanded for a good is given by the equation Qd = 100 - 4P, if the price is £10, then the quantity demanded is:

Accepted Answer

A)   96
B)   60
C)   40
D)   2.5E) B) and C)
F) C) and D)

Question 18

The demand for a product will shift outwards if the price of a complement increases.

Accepted Answer

A) True 
 B)False

Question 19

Diminishing marginal utility leads to the demand curve generally being:

Accepted Answer

A)   Vertical
B)   Upward sloping
C)   Horizontal
D)   Downward slopingE) B) and D)
F) A) and D)

Question 20

An inferior good is one for which:

Accepted Answer

A)   Quantity demanded will fall if price falls.
B)   Demand falls when income falls.
C)   Quantity demanded rises when price rises.
D)   Demand falls when income increases.E) C) and D)
F) None of the above D

Exam 3: Demand

Marketing campaigns are designed to:

Correct AnswerverifiedShow Answer

A movement along the demand curve may be caused by:

Correct AnswerverifiedD

When consumers switch to cheaper alternative products this is known as:

Correct AnswerverifiedShow Answer

An increase in the price of a product (if demand is downward sloping) will lead to:

Correct AnswerverifiedD

Utility is maximised when:

Correct AnswerverifiedShow Answer

The extra satisfaction from consuming another unit of a product is called the ________ _______.

Correct AnswerverifiedShow Answer

A decrease in the price of a product (if demand is downward sloping) will lead to:

Correct AnswerverifiedShow Answer

An increase in income is unlikely to substantially increase the demand for:

Correct AnswerverifiedShow Answer

An increase in demand for a normal product might occur because of:

Correct AnswerverifiedShow Answer

An increase in a person's income will have what effect on demand for 'inferior goods'

Correct AnswerverifiedShow Answer

A hot summer is likely to cause:

Correct AnswerverifiedShow Answer

If two products are substitutes a decrease in price of one will:

Correct AnswerverifiedShow Answer

When consuming a large meal in a buffet restaurant, marginal utility:

Correct AnswerverifiedShow Answer

What would the effect on the demand for product A be, as a result of an increase in the price of a substitute product?

Correct AnswerverifiedShow Answer

The marginal utility derived from consuming water is ____ and the total utility derived from consuming water is ______.

Correct AnswerverifiedShow Answer

During a recession, customers tend to:

Correct AnswerverifiedShow Answer

If the quantity demanded for a good is given by the equation Qd = 100 - 4P, if the price is £10, then the quantity demanded is:

Correct AnswerverifiedShow Answer

The demand for a product will shift outwards if the price of a complement increases.

Correct AnswerverifiedShow Answer

Diminishing marginal utility leads to the demand curve generally being:

Correct AnswerverifiedShow Answer

An inferior good is one for which:

Correct AnswerverifiedD

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D

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D

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The extra satisfaction from consuming another unit of a product is called the __ _.

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The marginal utility derived from consuming water is and the total utility derived from consuming water is __.

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D