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WorksheetsSupply/Demand Review
Total questions: 12
Worksheet time: 7mins
Name
Class
Date
1.
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
2.
What is demand?
a)
The desire to own something and the ability to afford it.
b)
A graph that shows the quantity demanded at every price.
c)
The usefulness of a product expressed in a dollar sign.
3.
Which of the following best describes the Law of Demand?
a)
As price goes down, demand goes down. (and vice versa).
b)
As price goes down, demand goes up (and vice versa).
c)
As demand goes down, supply goes up.
d)
As demand goes up, price becomes elastic.
4.
The demand curve always slopes
a)
down and to the right
b)
straight up and down
c)
down and to the left
d)
up and to the right
5.
Price goes on ________
a)
the vertical axis
b)
the horizontal axis
c)
at the origin
d)
the z axis
6.
Which of the following would NOT cause a demand curve to shift?
a)
a change in a consumer's income level
b)
a change in population
c)
a change in a consumer's expectations
d)
a change in the price of a product.
7.
Goods that are bought and used together are
a)
complementary goods
b)
substitute goods
c)
income goods
d)
unrelated goods
8.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
9.
The graph illustrates a ...
a)
Demand Curve
b)
Supply Curve
c)
Elasticity Curve
d)
Price Ceiling
10.
What is the major difference between scarcity and a shortage?
a)
They are really the same
b)
Shortages always exist and scarcity is temporary
c)
Shortages are temporary and scarcity always exist.
d)
Scarcity is limited and shortages are unlimited
11.
When companies compete in a market economy, what is usually the result?
a)
Consumers are able to buy goods for the best available price.
b)
People pay much higher prices for goods.
c)
There are frequent shortages of goods on the market.
d)
Producers refuse to sell some of their products.
12.
Read the following situation to answer the question:
The yeast needed to to make whole wheat bread rises sharply in price. What will happen to the price of whole wheat bread?
The yeast needed to to make whole wheat bread rises sharply in price. What will happen to the price of whole wheat bread?
a)
The price will rise.
b)
The price will stay the same.
c)
The price will fall.
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