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Microeconomics Topic 3

Total questions: 8

Worksheet time: 24mins

Name
Class
Date
1.

According to the table, The equilibrium price and quantity is _________

a)

$15,000; 15

b)

$10,000; 10

c)

$15,000; 10

d)

$20,000; 5

2.

Suppose Diet Coke and Light Coke are substitutes. Both contain zero sugar but comprise different artificial sweeteners.

What would happen if there is a cancer scare over the consumption of Diet Coke?

a)

The equilibrium price of Light Coke will fall

b)

The demand curve for light coke will shift to the right

c)

The equilibrium quantity of Diet Coke Coke will increase

d)

The price of Diet Coke will rise

3.

Study the graph. Which of the following factors would be responsible for the rise in the equilibrium price for wine in the graph according to the diagram?

a)

There is a rise in preference for wine

b)

A deadly fungus destroys vast amount of grapes in the vineyards

c)

There is a fall in income

d)

There is a rise in income

4.
Which graph would best explain a RISE in wages?
a)
Graph 1
b)
Graph 2
c)
Graph 3
d)
Graph 4
5.

Suppose a flood destroys the rice fields, you would expect the supply/demand curve to shift left/right and the equilibrium price to fall/rise

a)

demand, right, fall

b)

demand, left, rise

c)

supply, left, rise

d)

supply, right, rise

6.
Point A is the equilibrium for the market for Wine. Suppose the Wine Association decides to promote the health benefits of wine, shifting the demand curve to the right.
What is the surplus/shortage situation when the price is at $150?
a)
A surplus of 20,000 bottles
b)
A shortage of 20,000 bottles
c)
A surplus of 30,000
d)
A shortage of 30,000
7.

Suppose sugar and tea/coffee are complements. If the price of tea and coffee increase, you will expect __________________+

a)

the demand curve for sugar to shift right

b)

the demand curve for sugar to shift left

c)

the quantity demanded for sugar to fall

d)

the quantity demanded for sugar to rise

8.

The law of demand states that as price of a good rises

a)

the demand curve will shift left

b)

the demand curve will shift right

c)

the quantity demand of the good will fall

d)

the quantity demand of the good will rise