1. Name: ____________________________ Class: _________________ Date: ____________
Economics Chapter 4 Quiz LTHS Mr. Cress
A. Key Concepts
Directions: Write the letter of the correct answer in each blank.
_____ 1. For most products and services, increased price results in
A. demand for fewer products C. demand for more products
B. reduced demand for substitutes D. increased demand for complements
_____ 2. An increase in the price of milk causes a decrease in the demand for cereal. The two
products are
A. substitutes B. complements C. unrelated D. demand eleastic
_____ 3. Advertising, fashion trends, and new product introductions serve to
A. create consumer needs C. increase income effectiveness
B. create consumer demand D. minimize the income effect
_____ 4. Because a modest price increase has little or no effect, the demand for the product is
A. complementary B. inelastic C. elastic D. unit elastic
_____ 5. A business doubled the price of a product in order to increase profits. Which of the
following scenarios might have occurred?
A. A sharp increase in revenues demonstrated the elasticity of the product
B. A small increase in revenue demonstrated the unit elasticity of the product
C. A dramatic decline in revenues demonstrated the elasticity of the product
D. A dramatic decline in revenues demonstrated the inelasticity of the product
B. Applying Skills
Directions: In the space to the right, draft a demand curve for the following data. Include both x
and y axis and proper labeling (3 points)
Movie
Ticket Price
Quantity
Demanded
15 0
10 1
8 2
5 4
2 8

2. Name: ____________________________ Class: _________________ Date: ____________
Economics Chapter 4 Quiz LTHS Mr. Cress
C. Identifying Cause-and-Effect
Directions: For each of the following scenarios, indicate if the demand curve would shift to the
right or to the left (1 point each)
__________ Income increases __________ Income decreases
__________ Price of substitute increases __________ Price of substitute decreases
__________ Price of complement increases __________ Price of complement decreases
__________ Positive taste/fashion __________ Negative taste/fashion
__________ Positive expectations __________ Negative expectations
D. Applying Skills
Directions: Use the total expenditures test for demand elasticity. In the space, chart a demand
curve for each demand schedule and pick two points to mathematically determine elasticity
In the ___________, indicate whether the demand curve is elastic, inelastic, or unit elastic
Price Quantity
Demanded
Price Quantity
Demanded
Price Quantity
Demanded
3 2 3 2 3 2
2 3 2 2.5 2 4
_________________(1 pt.) _________________ (1 pt.) _________________ (1 pt.)
Demand curves and math: 1 pt. each