CLEP Microeconomics chapter practice4 questions

06 Demand

These questions come directly from the chapter practice in the book. Choose the best answer, check your reasoning, and use the explanation to correct any gap.

Question 1

Question 1 of 4

When the price of streaming subscriptions falls, quantity demanded rises, other things equal. This change is represented by

An own-price change changes quantity demanded and creates movement along the existing demand curve. A shift requires a nonprice determinant.
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B. a downward movement along demand

An own-price change changes quantity demanded and creates movement along the existing demand curve. A shift requires a nonprice determinant.

Question 2

Question 2 of 4

Tea and coffee are substitutes. If the price of tea rises, what is the most likely immediate effect in the coffee market?

A higher tea price makes coffee relatively more attractive, increasing coffee demand at every coffee price.
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E. Demand for coffee shifts right.

A higher tea price makes coffee relatively more attractive, increasing coffee demand at every coffee price.

Question 3

Question 3 of 4

After household income rises, purchases of store-brand cereal fall at every cereal price. Store-brand cereal is

Demand falls when income rises, which is the defining income response of an inferior good.
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C. an inferior good

Demand falls when income rises, which is the defining income response of an inferior good.

Question 4

Question 4 of 4

At a price of $5, Ana demands 3 units, Ben demands 7 units, and Chen demands 4 units. Market quantity demanded is

Market demand is the horizontal sum of individual quantities at the same price: 3+7+4=14.
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A. 14 units

Market demand is the horizontal sum of individual quantities at the same price: 3+7+4=14.

Quiz complete