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WorksheetsMarkets, Prices & Equilibrium
Total questions: 21
Worksheet time: 11mins
The Law of Demand states that as price decreases...
Quantity demanded decreases
Quantity demanded increases
Production increases
Quality Decreases
Supply depends on the willingness and ability of...
consumers to purchase
producers to sell
donors to contribute
advertisers to promote
According to the law of supply, what happens as price increases?
The quantity supplied increases
The quantity supplied decreases
The supply curve shifts to the left
The supply curve shifts to the right
The equilibrium price is the price at which...
demand and supply curves intersect
consumers start reducing demand
producers’ total revenue is highest
neither demand nor supply will shift
In the summer picnic season, a sharp rise in the price of burgers may lead to an increase in the demand for the substitute good, _____.
coleslaw
chicken
relish
buns
Which of the following will cause the demand to move along the demand curve rather than shifting it?
preferences
expectations
price
income
Which of these is most likely to happen to demand for clothes in a clothing store when blizzards keep customers at home?
The demand curve becomes steeper
The demand curve shifts to the right
The demand curve becomes flatter
The demand curve shifts to the left
Which of these would most likely increase the supply of soccer balls?
a government tax on sporting goods
a decrease in the price of raw materials
an increase in the supply of tennis balls
a transportation strike (truckers on strike)
Which of these situations best illustrates market equilibrium?
The amount of soap for sale matches the amount of soap that people want to buy.
Everyone who wants or needs soap can easily afford to buy it
Soap production ensures a good profit for the manufacturer
The price of soap does not vary much from week to week
What might result from setting a price ceiling on the price of rent for apartments?
Houses are broken up into apartments to meet the demand.
Construction jobs increase with the building of new apartment buildings.
People can find apartments but cannot afford to rent them.
More people want to rent apartments than the number of apartments available to rent.
As price for a good or service goes up, how does that typically affect the quantity demanded?
it increases
it decreases
it does not change
As price for a good or service goes up, how does that typically affect the quantity supplied?
it increases
it decreases
it does not change
Which letter shows the area of a shortage?
A
B
C
Which letter shows the equilibrium?
A
B
C
Which letter shows the area of surplus?
A
B
C
A price ceiling...
would be below the equilibrium
would be at the equilibrium
would be above the equilibrium
A price floor...
would be below the equilibrium
would be at the equilibrium
would be above the equilibrium
A price ceiling typically creates...
a shortage
a surplus
equilibrium
A price floor typically creates...
a shortage
a surplus
equilibrium
What is a black market?
The term for when business is good and profitable.
The term for when business is losing money.
When goods and services are exchanged illegally.
Which of the following are examples of price controls? Check all that apply.
shortage
price floor
rationing
price ceiling
