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AP Macroeconomics Practice Quiz: Demand

Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026

Test your understanding with short quizzes. This quiz has 13 questions to check your progress.

Question 1 of 13

According to the law of demand, what is the relationship between the price of a good and the quantity demanded?

All Questions (13)

According to the law of demand, what is the relationship between the price of a good and the quantity demanded?

A) A direct relationship

B) An inverse relationship

C) A proportional relationship

D) No relationship

Correct Answer: B

The provided content explicitly states that the law of demand describes an inverse relationship between price and quantity demanded. As price goes up, quantity demanded goes down, and vice versa.

The downward slope of the demand curve is a graphical representation of which of the following?

A) The law of supply

B) The determinants of demand

C) The law of demand

D) A change in consumer income

Correct Answer: C

The content specifies that the inverse relationship between price and quantity demanded, known as the law of demand, leads to a downward-sloping demand curve.

If the price of a smartphone decreases, what will happen to the quantity demanded for smartphones, assuming all other factors remain constant?

A) The quantity demanded will decrease.

B) The quantity demanded will increase.

C) The demand curve will shift to the left.

D) The demand curve will shift to the right.

Correct Answer: B

Based on the law of demand, there is an inverse relationship between price and quantity demanded. A decrease in the price of the good itself causes an increase in the quantity demanded, which is represented by a movement along the demand curve.

Which of the following events would cause the market demand curve for a normal good to shift to the right?

A) A decrease in the price of the good.

B) An increase in the price of the good.

C) A widespread increase in consumer income.

D) A new technology that makes producing the good cheaper.

Correct Answer: C

The content states that factors like changes in consumer income are determinants of demand that cause the market demand curve to shift. A decrease or increase in the good's own price causes a change in quantity demanded (a movement along the curve), not a shift. A change in production technology affects supply, not demand.

A 'change in demand' is different from a 'change in quantity demanded' because a 'change in demand' is caused by which of the following?

A) A change in the price of the good itself.

B) A change in a determinant of demand, such as consumer income.

C) The good becoming more or less popular at its current price.

D) A movement along a stationary demand curve.

Correct Answer: B

The provided content distinguishes between the effect of price (which changes quantity demanded) and the effect of other factors, called determinants of demand (which change demand). A change in a determinant, like income, causes the entire curve to shift, which is a 'change in demand'.

According to the provided content, which of the following is explicitly mentioned as a factor that can cause the market demand curve to shift?

A) The price of the product

B) The cost of labor to produce the product

C) Changes in consumer income

D) Government regulations

Correct Answer: C

The content specifically states, 'Factors that influence consumer demand, such as changes in consumer income, cause the market demand curve to shift.' The price of the product causes a movement along the curve, not a shift.

All of the following would cause a shift in the demand curve for coffee EXCEPT:

A) A change in the price of coffee.

B) A change in consumer income.

C) A new health study showing the benefits of drinking coffee.

D) A change in the price of tea, a substitute good.

Correct Answer: A

A change in the price of the good itself (coffee) causes a movement along the demand curve, which is a change in quantity demanded, not a shift in the demand curve (a change in demand). The other options are determinants of demand (income, tastes/preferences, price of related goods) that would cause the entire curve to shift.

On a standard graph of a market, a shift of the entire demand curve to the left indicates which of the following?

A) An increase in demand.

B) A decrease in demand.

C) An increase in quantity demanded.

D) A decrease in quantity demanded.

Correct Answer: B

A shift of the demand curve represents a change in overall demand. A shift to the left (or inward) means that at any given price, consumers are willing and able to buy less of the good than before, which is a decrease in demand.

The 'determinants of demand' are best described as:

A) The variables of price and quantity that make up the demand curve.

B) The inverse relationship between the price of a good and the quantity consumers will buy.

C) Factors other than a good's own price that can cause the demand curve to shift.

D) The reasons why a demand curve is upward-sloping.

Correct Answer: C

The content explains that determinants of demand are factors, such as consumer income, that influence consumer demand and cause the market demand curve to shift. This distinguishes them from the good's own price, which causes movement along the curve.

The law of demand states that, ceteris paribus, when the price of a product falls:

A) The quantity demanded of the product will fall.

B) The demand for the product will fall.

C) The quantity demanded of the product will rise.

D) The demand for the product will rise.

Correct Answer: C

This is a direct application of the law of demand, which posits an inverse relationship between price and quantity demanded. If the price falls, the quantity demanded will rise.

Assume that after a major recession, consumer incomes across the country fall significantly. How would this event be represented on a demand graph for a normal good like restaurant meals?

A) A movement down along the existing demand curve.

B) A movement up along the existing demand curve.

C) A shift of the entire demand curve to the right.

D) A shift of the entire demand curve to the left.

Correct Answer: D

Consumer income is a determinant of demand. For a normal good, a decrease in consumer income will lead to a decrease in demand at every price level. This is shown graphically as a shift of the entire demand curve to the left.

A movement from one point to another along the same demand curve is a result of:

A) An increase in consumer income.

B) A change in the price of the good being analyzed.

C) A change in the price of a substitute good.

D) A change in consumer preferences.

Correct Answer: B

The content distinguishes between shifts of the curve and movements along it. A movement along the curve is defined as a change in quantity demanded, which is caused only by a change in the price of that specific good. All other options are determinants that would shift the entire curve.

Which statement correctly summarizes the core principle of the law of demand?

A) As consumer income rises, the quantity of goods people demand also rises.

B) The higher the price of a good, the smaller the quantity consumers will want to buy, and vice versa.

C) The demand curve for most goods is a horizontal line at the market price.

D) Factors that influence supply will also cause the demand curve to shift in the same direction.

Correct Answer: B

This statement is a clear and accurate summary of the inverse relationship between price and quantity demanded, which is the central concept of the law of demand as described in the provided content.