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Demand & Supply Ch 4-5

Total questions: 40

Worksheet time: 10hrs 0mins

Name
Class
Date
1.

What is an example of inelastic demand?

a)

A new car

b)

Insulin

c)

Gasoline

d)

Bananas

2.

Amount of goods and/or services a consumer is willing & able to buy at various prices during a given time period is called...

a)

Supply

b)

Scarcity

c)

Elasticity of Demand

d)

Demand

3.

A measure of how suppliers will respond to a change in price is...

a)

Price elasticity

b)

The 'rubber band' effect

c)

Elasticity of supply

d)

Elasticity of demand

4.

A government payment to support a business or market

a)

Tariff

b)

Subsidy

c)

Laissez faire

d)

Substitutes

5.

The tendency of suppliers to offer more of a good at a higher price

a)

law of supply

b)

law of shortage

c)

law of scarcity

d)

law of demand

6.

The law of demand states...

a)

Other things remaining the same, the higher the price of a good, the smaller is the quantity demanded.

b)

A decrease in the price of a good shifts the demand curve leftward.

c)

Other things remaining consistent, the higher the price of a good, the smaller is the quantity demanded.

d)

An increase in the price of a good shifts the demand curve leftward.

7.

Which of the following does NOT shift the supply curve?

a)

A decrease in the wages of labor used in the production of the good

b)

An increase in the price of the good

c)

A technological advance

d)

A fall in the price of a substitute in production

8.

You would refer to a(n) ______ to find the quantity that a person would purchase at each price that could be offered in a market.

a)

demand curve

b)

curve ball

c)

dangerous curve

d)

elastic curve

9.

For a(n) _____, consumer's demand will increase as their income increases.

a)

normal good

b)

demand good

c)

supply good

d)

elasticity

10.

This occurs when an increase in price decreases a buyer's real income.

a)

Inelasticity

b)

Elasticity

c)

Income effect

d)

Law of demand

11.

Demand for goods that are necessities is usually...

a)

elastic

b)

inelastic

c)

unitary elastic

d)

the rubber band effect

12.

An expense that costs the same whether or not a firm is producing a good or service.

a)

Elastic cost

b)

Fixed cost

c)

Inelastic expense

d)

Optional cost

13.

The income a supplier receives from selling an additional unit.

a)

marginal cost

b)

profit

c)

marginal revenue

d)

incentive

14.

A tax on the sale or manufacture of a good is called?

a)

Exercise tax

b)

Sales tax

c)

Excise tax

d)

Revenue

15.

The additional cost of producing one more unit of output is called?

a)

Fixed cost

b)

Marginal cost

c)

Subsidy

d)

Income

16.

A government payment to support a business.

a)

tariff

b)

tax

c)

subsidy

d)

elastic income

17.

The tendency of businesses to offer additional goods at a higher price

a)

Law of demand

b)

Law of supply

c)

Law & order

d)

Law of elasticity

18.

A measure of how suppliers will respond to a change in price

a)

Inelasticity of demand

b)

Elasticity of supply

c)

The invisible hand

d)

Elasticity of demand

19.

I prefer taking assessments via:

a)

EDPuzzle

b)

Quizizz

c)

Google Forms

d)

Scranton

20.

According to the _______, when prices increase, demand decreases.

a)

law of demand

b)

law of supply

c)

law of elasticity

d)

law of the land

21.

The concept of demand and supply works best in a:

a)

Mixed economic system

b)

Traditional market system

c)

Command economic system

d)

Market economic system

22.

Which economic system would be least responsive to the concept of supply and demand?

a)

Mixed

b)

Traditional

c)

Central

d)

Market

23.

Supply and demand is based on

a)

shortage

b)

surplus

c)

scarcity

d)

regulated consumption

24.

What is the term for the measure of how much quantity demanded of a good responds to a change in consumers' income?

a)

Income elasticity of demand

b)

Price elasticity of demand

c)

Income elasticity of supply

d)

Price elasticity of supply

25.

What is the term for a good that consumers demand less of when their incomes increase?

a)

Inferior good

b)

Normal good

c)

Luxury good

d)

Substitute good

26.

What is the term for the amount of a good that buyers are willing and able to purchase?

a)

Supply

b)

Demand

c)

Equilibrium

d)

Income

27.

What happens to the demand of a good when its price increases, according to the law of demand?

a)

The demand increases

b)

The demand decreases

c)

The demand remains the same

d)

The demand fluctuates

28.

What is the term for the amount of goods sellers are willing and able to sell?

a)

Supply

b)

Demand

c)

Equilibrium

d)

Subsidy

29.

The balance between supply & demand

a)

The balance between supply and demand is called equilibrium cost

b)
The balance between supply and demand is called inflation
c)
The balance between supply and demand is called deflation
d)
The balance between supply and demand is called recession
30.

In 2000, there were 200,000 gas grills demanded at a price of $500. In 2001, the demand for gas grills exceeded 200,000 at the same price. This increase could be the result of any of the following EXCEPT:

a)
An increase in the income of consumers
b)
A decrease in the price of a substitute good
c)
An increase in the price of a complementary good
d)
A decrease in the population of consumers
31.

All of the following influence supply except

a)
Price of the product
b)
Cost of production
c)
Consumer preferences
d)
Government policy
32.

All of the following effect demand except

a)
Price of the product
b)
Income of the consumer
c)
Taste and preference of the consumer
d)
Color of the product packaging
33.

All of the following can effect the global supply chain except

a)
Natural disasters
b)
Political instability
c)
Economic fluctuations
d)

the Invisible Hand of the marketplace

34.

How does the Invisible Hand of the marketplace influence supply & demand?

a)

It adjusts supply and demand through the decisions of many firms and households

b)
It physically moves goods from supply to demand
c)
It is a government mechanism that controls supply and demand
d)
It is a theory that does not influence supply and demand
35.

The just right price between supply & demand

a)

demand curve

b)

equilibrium price

c)

supply curve

d)

equilibrium cost

36.

What economic concept is depicted in the photo?

a)

demand curve

b)

supply curve

c)

supply & demand curve

d)
Market Equilibrium
37.

Use the chart to answer the question

How many urban residents would take a taxi ride that costs $20?

a)

92

b)

84

c)

78

d)

76

38.

Which service has equally low demand in both regions at $30?

a)

taxi rides

b)

haircuts

c)

taxi rides & haircuts

d)

lawn mowing

39.

Which economic system would be least responsive to the concept of supply and demand?

a)

Free Market

b)

Command

c)

Mixed

d)

Traditional

40.

In 2000, there were 200,000 gas grills demanded at a price of $500. In 2001, the demand for gas grills exceeded 200,000 at the same price. This increase could be the result of any of the following EXCEPT:

a)
An increase in the income of consumers
b)
A decrease in the price of a substitute good
c)
An increase in the price of a complementary good
d)
A decrease in the population of consumers