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WorksheetsSupply & Demand
Total questions: 23
Worksheet time: 17mins
Name
Class
Date
1.
When a consumer is able and willing to buy a good or service, he/she creates what?
a)
consumption
b)
demand
c)
elasticity
d)
allocation
2.
What determines the price and the quantity produced of most goods/?
a)
The consumers perception of necessity
b)
the interaction of supply and demand
c)
the availability of substitutes
d)
the quantity of the goods that are produced
3.
What are inferior goods?
a)
goods that are not well produced
b)
goods no one wants to buy
c)
goods for which the demand rises when income falls
d)
goods for which the demand rises when income rises
4.
What determines how a change in price will affect total revenue for a company?
a)
elasticity of demand
b)
the company's pricing policy
c)
values of elasticity
d)
the consumer's incomes
5.
What shows the quantities of products demanded at each price by all consumers in a market?
a)
a market pricing list
b)
a schedule of consumer prices
c)
a market demand schedule
d)
an elasticity and consumption list
6.
What kind of table lists the quantity of a good that a person will buy at different prices?
a)
market demand curve
b)
market demand schedule
c)
demand schedule
d)
demand curve
7.
What does it mean when the demand for a good is inelastic?
a)
People will not buy the good when the price goes up
b)
a price increase has no significant impact on buying habits
c)
consumers are sensitive to the price of the good
d)
there are very few satisfactory substitutes for the good
8.
What is the basic principle of the law of demand?
a)
the higher the price, the more people will want the good
b)
everyone has a limited income that they will spend
c)
when a good'd price is lower, people will buy more of it
d)
services are of interest in the same way that goods are
9.
Which of the following goods might not be bought when prices rise?
a)
complement
b)
luxury
c)
inferior good
d)
substitute
10.
What is a company's total revenue?
a)
the price of their goods
b)
the amount they receive for selling their goods
c)
the amount og goods they can expect to sell
d)
the amount of profit they can expect to make
11.
Which of the following is the best example of the law of supply?
a)
a milling company builds a new factory to process flour for export
b)
a catering company buys a new dishwasher to make their work easier
c)
a food producer increases the number of acres of wheat he grows to supply a milling company
d)
a sandwich shop increases the number of sandwiches they supply every day when the price is increased
12.
The diagram represents a(n)
a)
increase in supply
b)
decrease in supply
c)
change in quantity supplied
d)
none of the above
13.
If elected President Hillary Clinton plans to create stricter regulations on pollution caused by cars. What will happen to the amount of cars supplied at all prices?
a)
increase
b)
decrease
c)
not be affected
14.
More sellers enter the "Pizza" market. What happens to the total number of pizzas supplied?
a)
they decrease (curve shifts left)
b)
they increase (curve shifts right)
c)
they stay the same (the curve stays)
15.
What happens to the supply of tobacco products when the government raises the excise tax on cigarettes?
a)
amount supplied increases (shifts to the right)
b)
amount supplied decreases (shifts to the left)
c)
ill not be affected
16.
What causes movement along the supply curve?
a)
Taxes, Subsidies, Regulations, cost of inputs
b)
ONLY a change in price
17.
If Michael Jordan did advertisements for Steak and Shake, this would cause the ___________ curve for Steak and Shake to shift ____________.
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
18.
If people knew we were going to war with Saudi Arabia, and thought this would make gas prices triple in three months, how would this affect demand of gas now?
a)
It would increase
b)
It would decrease
c)
N/A
d)
N/A
19.
If sandals suddenly became very popular, what would happen to the market for basketball shoes? This would cause the ___________ curve for basketball shoes to shift ____________.
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
20.
When CDs became popular, people stopped listening to tape cassettes. This caused the ___________ curve for tape cassettes to shift ____________.
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
21.
If a new, huge oil reservoir was found in Ohio, this would cause the ___________ curve for oil and gas to shift ____________.
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
22.
If the equilibrium price of a taxi ride is $30, but a taxi company tried to charge $40 for rides, this would result in a ________________ in taxis because supply is ___________ than demand.
a)
shortage.......lower
b)
shortage.....higher
c)
surplus.......lower
d)
surplus......higher
23.
If the equilibrium price of bananas is $2/lb, but Kroger charged $1/lb for them, this would result in a ________________ in bananas because supply is ___________ than demand.
a)
shortage.......lower
b)
shortage......higher
c)
surplus........lower
d)
surplus.......higher
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