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Worksheetssupply and demand
Total questions: 25
Worksheet time: 50mins
Which of the following would NOT be a determinant of demand?
a. the price of related goods
b. income
c. tastes
d. the prices of the inputs used to produce the good
If the price of a substitute to good X increases, then
the demand for good X will increase.
the market price of good X will decrease.
the demand for good X will decrease.
the demand for good X will not change.
Suppose you like banana cream pie made with vanilla pudding. Assuming all other things are constant, you notice that the price of bananas is higher. How would your demand for vanilla pudding be affected by this?
It would decrease.
It would increase.
It would be unaffected.
There is insufficient information given to answer the question.
A higher price for batteries would tend to
increase the demand for flashlights.
decrease the demand for electricity.
increase the demand for electricity.
increase the demand for batteries.
What will happen in the rice market if buyers are expecting higher prices in the near future?
The demand for rice will increase.
The demand for rice will decrease.
The demand for rice will be unaffected.
The supply of rice will increase.
Holding all else constant, a higher price for ski lift tickets would be expected to
increase the number of skiers.
decrease demand for skis.
decrease the demand for other winter recreational activities.
decrease the supply of ski resorts.
When the price of a good or service changes,
there is a movement along a stable demand curve.
demand shifts in the opposite direction.
demand shifts in the same direction.
supply shifts in the opposite direction.
Other things equal, when the price of a good rises, the quantity supplied of the good also rises. This is
the law of increasing costs.
the law of diminishing returns.
the law of supply.
the law of demand.
Suppose that there is an increase in input prices. We would expect
supply to increase.
supply to decrease.
supply could increase or decrease.
supply to remain unchanged.
If, at the current price, there is a shortage of a good,
the price is below the equilibrium price.
the market can be in equilibrium.
sellers are producing more than buyers wish to buy.
All of the answers are correct.
Refer to Graph 4-5. According to the graph, equilibrium price and quantity are
$7, 20.
$7, 60.
$5, 40.
$3, 60.
Refer to Graph 4-5. According to the graph, at a price of $7,
there would be a shortage of 40 units.
there would be a surplus of 40 units.
there would be a surplus of 20 units.
the market would be in equilibrium.
Refer to Graph 4-5. According to the graph, at a price of $3,
there would be a shortage of 40 units.
there would be a surplus of 40 units.
there would be a surplus of 20 units.
the market would be in equilibrium.
Table 4-2
PRICE QUANTITY DEMANDED QUANTITY SUPPLIED
$10 10 100
8 20 80
6 30 60
4 40 40
2 50 20
Refer to Table 4-2. In the table shown, if the price were $8,
a surplus of 30 units would exist and price would tend to fall.
a surplus of 60 units would exist and price would tend to rise.
a surplus of 60 units would exist and price would tend to fall.
a shortage of 30 units would exist and price would tend to rise.
Table 4-2
PRICE QUANTITY DEMANDED QUANTITY SUPPLIED
$10 10 100
8 20 80
6 30 60
4 40 40
2 50 20
Refer to Table 4-2. In the table shown, if the price were $2,
a surplus of 30 units would exist and price would tend to fall.
a surplus of 60 units would exist and price would tend to rise.
a surplus of 60 units would exist and price would tend to fall.
a shortage of 30 units would exist and price would tend to rise.
Refer to the Graph 4-6. If price is $15, quantity supplied would be
200
400
500
700
Refer to the Graph 4-6. At a price of $20
the market would be in equilibrium.
600 units would be bought and sold.
there would be no pressure for price to change.
All of the answers are true.
Refer to the Graph 4-6. In this market, equilibrium price and quantity would be
$15, 400.
$20, 600.
$25, 500.
$25, 800.
When the price is higher than the equilibrium price,
a shortage will exist.
buyers desire to purchase more than is produced.
sellers desire to produce and sell more than buyers wish to purchase.
quantity demanded equals quantity supplied.
When there is a shortage in a market,
there is downward pressure on price.
there is upward pressure on price.
the market could still be in equilibrium.
the price must be above equilibrium.
Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y are
complementary goods.
substitute goods.
unrelated goods.
normal goods.
Which of the following is a determinant of demand?
the price of a substitute good
the price of a complement good
the price of the good next month
all of the answers are correct.
When we move up or down a given demand curve,
only price is held constant.
all non-price determinants of demand are assumed to be constant.
income and the price of the good are held constant.
all determinants of quantity demanded are held constant.
Holding the nonprice determinants of supply constant, a change in price would
result in a change in supply.
result in a movement along a stable supply curve.
result in a shift of demand.
have no effect on the quantity supplied.
Wheat is the main input in the production of flour. If the price of wheat increases, all else equal, we would expect
the supply of flour to be unaffected.
the supply of flour to decrease.
the supply of flour to increase.
the demand for flour to decrease.
