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WorksheetsSupply & Demand
Total questions: 25
Worksheet time: 16mins
Name
Class
Date
1.
What does this graph show?
a)
Shortage
b)
Surplus
c)
Supply Table
d)
Equilibrium
2.
Which of the following would not cause as shift in demand?
a)
Decrease in income
b)
Lower supply
c)
Change in tastes
d)
Increase in price
3.
What is not an example of a substitute?
a)
Train freight and truck freight
b)
Peanut butter and jelly
c)
Hershey's and Nestle chocolate
d)
Microsoft Word and Google Docs
4.
Which of the following would cause a change in supply?
a)
A change in market price
b)
A change in technology available
c)
A change in the number of sellers
d)
All of the above
5.
What is market demand?
a)
The dividend of all individual demand
b)
The product of all individual demand
c)
The quotient of all individual demand
d)
The sum of all individual demand
6.
Which situation shows the law of diminishing marginal utility at work?
a)
you are willing to pay more for every succeeding slice of pizza you purchase.
b)
you are willing to pay the same price for every succeeding lsice of pizza you purchase.
c)
You will only purchase succeeding slices of pizza if they cost less.
d)
Each slice of pizza you buy gets smaller.
7.
Which of the following parts of a consumer budget would be most price elastic?
a)
housing
b)
cable
c)
telephone
d)
automobile
8.
As money income increases, what happens to the demand for inferior goods?
a)
it increases
b)
it stays the same
c)
it decreases
d)
it is eliminated
9.
If suddenly, a large population increase occurred, what impact would it have on the housing market?
a)
prices would remain constant.
b)
There would be a surplus of homes on the market.
c)
It would shift the demand curve to the left.
d)
It would shift the demand curve to the right.
10.
Which item would provide you with the least marginal utility?
a)
a second copy of the daily newspaper.
b)
a second drink of water when you're thirsty.
c)
a second pair of sneakers.
d)
a second car.
11.
The demand for products or services for which there are no substitutes tends to be
a)
somewhat elastic
b)
unit elastic
c)
quite inelastic
d)
perfectly elastic
12.
Which of the following is a variable resources for a firm?
a)
warehouse size
b)
assembly line equipment
c)
labor
d)
mortgage owed on a building
13.
The law of supply states that the quantity of a good supplied is usually directly related to its
a)
opportunity cost
b)
total cost
c)
price
d)
elasticity
14.
The term quantity supplied refers to
a)
the entire supply schedule
b)
the total amount supplied by all producers in the market
c)
the amount offered for sale at a specific price
d)
the number of individual producers
15.
What does a leftward shift of a supply curve indicate?
a)
an increase in supply
b)
a decrease in quantity supplied
c)
an increase in quantity supplied
d)
a decrease in supply
16.
Imagine that a firm hired a 3rd worker, and total production increases by 12 units. The firm hires a 4th worker, and total production increases by 10 units. This illustrates
a)
economies of scale
b)
the law of diminishing returns
c)
profit maximization
d)
a change in supply
17.
The satisfaction you derive from an additional unit of a product is called your
a)
marginal utility
b)
tastes
c)
total revenue
d)
demand
18.
The demand for a(n) ___ increases as money income increases- that is, the demand curve shifts rightward when consumer income increases.
a)
normal good
b)
inferior good
c)
superior good
d)
declining good
19.
A(n) ___ cost is one that does not change in the short run, no matter how much is produced.
a)
fixed
b)
variable
c)
total
d)
elastic
20.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
21.
The graph illustrates a ...
a)
Demand Curve
b)
Supply Curve
c)
Elasticity Curve
d)
Price Ceiling
22.
When the demand for a product or service is higher than the supply this causes what?
a)
shortage
b)
consumer
c)
surplus
d)
equilibrium
23.
The point where supply and demand are balanced is?
a)
product
b)
demand
c)
surplus
d)
equilibrium
24.
When there is a shortage the price will usually?
a)
rise
b)
fall
c)
remain the same
d)
equilibrium
25.
On a market demand and supply graph, the vertical axis shows
a)
Demand
b)
equilibrium
c)
prices
d)
quantity
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