YEAR 11 ECONOMICS CLASSWORK (WEEK 1 & 2)

What is measured on the vertical axis of a demand diagram?

• Cost

• Price

• Quantity demanded

• Wants

What happens to people’s willingness and ability to buy a product when its price falls? Willingness Ability A increases increases B increases decreases C decreases decreases D decreases increases

• Willingness increases, Ability increases

• Willingness increases, Ability decreases

• Willingness decreases, Ability decreases

• Willingness decreases, Ability increases

An increase in demand is represented by:

• A movement down the demand curve

• A movement up the demand curve

• A shift to the left of the demand curve

• A shift to the right of the demand curve

The price of a product rises. What will happen to the demand for its complement?

• It will increase

• It will decrease

• It will extend

• It will contract

What is the relationship between demand and price and the relationship between supply and price? Demand and price Supply and price A directly related directly related B directly related inversely related C inversely related directly related D inversely related inversely related

• Demand and price: directly related

  Supply and price: directly related

• Demand and price: directly related

  Supply and price: inversely related

• Demand and price: inversely related

  Supply and price: directly related

• Demand and price: inversely related

  Supply and price: inversely related

What does a market supply curve show?

• The proportion of total output produced by different firms in the industry

• Proportion of total output sold

• The relationship between the total quantity supplied and demand for the product

• The relationship between the total quantity supplied and the price of the product

How would an increase in supply be illustrated?

• A movement up the supply curve

• A movement down the supply curve

• A shift to the left of the supply curve

• A shift to the right of the supply curve

What would cause an increase in the supply of milk?

• An increase in the price of cattle feed

• An increase in wages paid to farm workers

• The introduction of a subsidy to cattle farmers

• The outbreak of a disease affecting cows

Equilibrium price is the price at which:

• Everything that is produced is sold

• The amount consumers demand is equal to the amount sellers supply

• The number of buyers equals the number of sellers

• Supply exceeds demand

A market is experiencing a shortage. What will happen to price and sales as the market moves back to equilibrium?

• Price: Decrease

  Sales: Fall

• Price: Decrease

  Sales: Rise

• Price: Increase

  Sales: Fall

• Price: Increase

  Sales: Rise