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Supply & Equilibrium

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

The Market Clearing Price is at which point on the graph?

a)

X Axis

b)

Y Axis

c)

Equilibrium

d)

Supply Curve

2.

If the price of a good is too low which of the following will result?

a)

Equilibrium

b)

No effect

c)

Surplus

d)

Shortage

3.

If there is a shortage of beef at Fry's which of the following is the MOST likely to happen?

a)

They will produce more beef

b)

The price will rise

c)

The price will fall

d)

There will be no change

4.

Which of the following is true when there is a surplus of a good?

a)

QS > QD

b)

QS = QD

c)

QS< QD

d)

None of the above

5.

What Market Disequilibrium is created by the government policy of rent control?

a)

Equilibrium

b)

Affordable Housing for all who want it.

c)

Affordable housing surplus

d)

Affordable housing shortage

6.

What market disequilibrium is created by the government policy of minimum wage?

a)

A labor shortage

b)

a labor surplus

c)

economic prosperity for all

d)

market equilibrium for labor

7.

Price gouging laws and rent control laws are examples of which of the following?

a)

Price floor

b)

Market clearing price

c)

Market minimums

d)

Price ceiling

8.

Minimum wage is an example of which of the following

a)

Price floor

b)

Market equilibrium

c)

Market price

d)

Price ceiling

9.

Supply is from the point of view of the____________.

a)

Politician

b)

Consumer

c)

Producer

d)

Individual

10.

Which of the following best describes a subsidy?

a)

Taxes on a consumer to discourage an activity.

b)

Money taken from consumers to encourage an activity.

c)

Money given to a business to encourage an activity.

d)

No money changes hands.

11.

If Audrey wants to buy more candy than the store has available, what should the store do to eliminate this excess demand?

a)

Raise the price

b)

Produce more candy

c)

Just do nothing

d)

Set a maximum limit

12.

If there is an increase in feed prices what will happen to the supply curve for beef?

a)

There will be no change

b)

A shift to the right

c)

We can not determine

d)

A shift to the left

13.

If there is a decrease in sugar prices what will happen to the supply curve for candy?

a)

No change

b)

A shift to the right

c)

A shift to the left

d)

We can not determine

14.

If there is an increase in the price of DVD players what will happen to the supply curve?

a)

It will shift to the left

b)

No change

c)

It will shift to the right

d)

We can not determine

15.

When there is a decrease in the price of DVD players what does change?

a)

The quantity supplied does not change

b)

The quantity demanded does not change

c)

We can not determine

d)

The quantity supplied changes

16.

If there is an improvement in the technology to make hamburgers what will happen to the price of hamburgers supplied?

a)

There will be an increase in price.

b)

No change in price.

c)

There will be a decrease in price.

d)

We can not determine the change.

17.

If Mr. Walsh starts selling pickles to compete with Mr. Caryl Selling pickles what will happen to the supply curve AND the price for pickles?

a)

Shift to the right and decrease in price

b)

Shift to the left and increase in price

c)

Shift to the left and decrease in price

d)

Shift to the right and increase in price

18.

What happens to the quantity supplied when Mr. Walsh AND Mr. Caryl are both selling pickles.

a)

There is no change

b)

The quantity supplied decreases

c)

We can not determine

d)

The quantity supplied increases

19.

Which determinant of supply for cell phones would be affected if the workers were paid 10% more.

a)

Technology

b)

Cost of resources

c)

Number of producers

d)

Availability of resources

20.

If the cost of labor increases what will happen to the price of cell phones?

a)

The cost will decrease

b)

The cost will increase

c)

No change in price

d)

We can not determine