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WorksheetsSupply and Demand
Total questions: 27
Worksheet time: 27mins
Name
Class
Date
1.
The market for corn in Kansas is considered to be competitive. This means there are _____ buyers and _____ sellers of corn in Kansas.
a)
many; few
b)
few; many
c)
many; many
d)
few; few
2.
The law of demand states that other things equal, as the price:
a)
increases, the quantity demanded will increase.
b)
decreases, the demand curve will shift to the right.
c)
increases, demand will decrease.
d)
increases, the quantity demanded will decrease.
3.
A negative relationship between quantity demanded and price is called the law of:
a)
demand.
b)
increasing returns.
c)
market clearing.
d)
supply.
4.
Which of the following illustrates the law of demand?
a)
An increase in tuition encourages more students to enroll in college because the quality of education has risen.
b)
Consumers buy more personal computers because prices have fallen.
c)
Oil companies drill for new sources because prices are higher.
d)
Fewer people play golf because incomes are lower.
5.
illustrates an inverse relationship between price and quantity.
a)
A demand curve
b)
A supply curve
c)
A production possibility frontier
d)
Equilibrium
6.
A negative relationship between the quantity demanded and price is called the law of:
a)
demand.
b)
marginality.
c)
efficiency.
d)
supply.
7.
The law of demand is illustrated by a demand curve that is:
a)
horizontal.
b)
downward-sloping.
c)
vertical.
d)
upward-sloping.
8.
The law of demand implies that:
a)
consumers are not responsive to price changes.
b)
consumers will buy more at lower prices.
c)
sellers will offer more on the market at higher prices.
d)
sellers will offer less on the market at lower prices.
9.
The ____________ apples will decrease when apple prices rise.
a)
demand for
b)
quantity demanded of
c)
supply of
d)
equilibrium of
10.
A decrease in the price of a good will result in:
a)
an increase in demand.
b)
an increase in supply.
c)
an increase in the quantity demanded.
d)
more being supplied.
11.
Which of the following factors would result solely in a movement along the demand curve for a particular good?
a)
a change in the prices of related goods
b)
a change in the price of that good
c)
a change in the size of the population
d)
both a change in the price of that good and a change in the size of the population
12.
A decrease in the price of eggs will result in an increase in the:
a)
demand for eggs.
b)
supply of eggs.
c)
quantity of eggs supplied.
d)
quantity of eggs demanded.
13.
Which of the following best exemplifies the law of demand?
a)
As income taxes rise, fewer new cars are purchased.
b)
As the price of corn rises, more acres of corn are planted.
c)
As the price of a car rental rises, fewer cars are rented.
d)
As the population rises, more electricity is consumed.
14.
Which of the following statements is CORRECT?
a)
A change in demand is a movement along the demand curve, and a change in quantity demanded is a shift of the demand curve.
b)
Both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.
c)
Both a change in quantity demanded and a change in demand are shifts of the demand curve, only in different directions.
d)
A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift of the demand curve.
15.
Which of the following best describes demand?
a)
A change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve.
b)
A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve.
c)
Both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.
d)
Both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.
16.
In much of the country, homeowners choose to heat their houses with either natural gas or heating oil. Which of the following would cause an increase in the demand for natural gas?
a)
an increase in the price of natural gas
b)
a decrease in the price of natural gas
c)
a decrease in the price of heating oil
d)
an increase in consumer incomes
17.
Raclette is a popular wintertime dish in Switzerland. It is essentially melted Raclette cheese over boiled new potatoes. If the price of Raclette cheese decreased, we would expect to see:
a)
an increase in demand for Raclette cheese.
b)
an increase in demand for new potatoes.
c)
no effect on the demand for either of the Raclette ingredients, since this is a traditional dish and its consumption does not depend on the prices of the ingredients.
d)
an increase in demand for Raclette cheese and for new potatoes.
18.
When the economy turns down and the incomes of many people decrease, vacationers are more likely to take car trips than to fly. Which of the following provides one possible explanation for this phenomenon?
a)
Air travel and travel by car are complementary goods.
b)
Air travel and travel by car are both normal goods.
c)
Air travel is a normal good and travel by car is an inferior good.
d)
Air travel is an inferior good and travel by car is a normal good.
19.
A shift of the demand curve for thin-crust pizza would NOT be caused by a change in:
a)
buyers' incomes.
b)
the price of thin-crust pizza.
c)
the price of thick-crust pizza.
d)
the popularity of thin-crust pizza.
20.
If goods A and B are substitutes, a decrease in the price of good B will:
a)
increase the demand for good A.
b)
increase the demand for good B.
c)
decrease the demand for good A.
d)
increase the demand for good B and decrease the demand for good A.
21.
If goods A and Z are complements, an increase in the price of good Z will:
a)
increase the demand for good A.
b)
decrease the demand for good A.
c)
decrease the demand for good Z.
d)
decrease the demand for both good A and good Z.
22.
Over the past several years, consumers have had an increasing interest in getting tattoos. This means that the _______________ for tattoos has ____________ .
a)
quantity demanded; increased
b)
demand; decreased
c)
demand; increased
d)
quantity demanded; decreased
23.
Which of the following will NOT cause an increase in demand for good X?
a)
a decrease in income if good X is an inferior good
b)
an increase in income if good X is a normal good
c)
a decrease in the price of good X
d)
an increase in consumers' taste for good X
24.
Which of the following is TRUE of a normal good?
a)
When income increases, the demand for the good remains unchanged.
b)
When income increases, the demand for the good decreases.
c)
When income increases, the demand for the good increases.
d)
Income and the demand are unrelated.
25.
Which of the following is TRUE of an inferior good?
a)
When income increases, demand remains unchanged.
b)
When income increases, demand decreases.
c)
When income increases, demand increases.
d)
Income and demand are unrelated.
26.
The demand curve for videos has shifted to the right. What could have caused it?
a)
a fall in the price of videos
b)
an increase in the price of videos
c)
an increase in the supply of videos
d)
an increase in the incomes of buyers
27.
If people demand more of product A when the price of B falls, then A and B are:
a)
not related.
b)
substitutes.
c)
complements.
d)
inferior goods.
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