WorksheetsSupply and Demand Review
Total questions: 22
Worksheet time: 9mins
Define "demand"
How much of a product sellers are willing and able to sell
How much of a product buyers are willing and able to buy
How much the government collects in taxes when a product is sold
How much it costs to produce a product
How much a third party benefits when a product is consumed
Define "supply"
How much of a product sellers are willing and able to sell
How much of a product buyers are willing and able to buy
How much the government collects in taxes when a product is sold
How much it costs to produce a product
How much a third party benefits when a product is consumed
On a supply and demand graph, the y (vertical) axis is labeled ____________, while the x (horizontal) axis is labeled ____________.
supply; demand
demand; supply
price; quantity
quantity; price
According to the law of demand ______________
people tend to buy the same amount of a product regardless of its price
people tend to buy less of a product when the price goes up
people tend to buy more of a product when the price goes up
people tend to buy less of a product when the price goes down
According to the law of supply, ___________.
sellers tend to sell the same quantity of a product regardless of its price
sellers tend to sell less of a product when the price goes up
sellers tend to sell more of a product when the price goes down
sellers tend to sell more of a product when the price goes up
Suppose that at the current price, sellers are willing and able to sell less of a product than buyers are willing and able to buy. (i.e. There is a "shortage" in the market). What will likely happen in this market?
demand will shift to the right
supply will shift to the left
price will fall
price will rise
Suppose that at the current price, sellers are willing and able to sell more of a product than buyers are willing and able to buy. (i.e. There is a "surplus" in the market). What will likely happen in this market?
demand will shift to the right
supply will shift to the left
price will fall
price will rise
In a free and competitive market, price will tend to move towards the _____________ price, the price at which quantity demanded equals quantity supplied.
retail
regulated
equilibrium
perfect
government-mandated
If demand for a product increases, the equilibrium price will __________ and quantity will ___________.
rise; rise
rise; fall
fall; rise
fall; fall
fall; remain the same
If supply of a product increases, the equilibrium price will __________ and quantity will ___________.
rise; rise
rise; fall
fall; rise
fall; fall
remain the same; rise
If supply of a product decreases, the equilibrium price will __________ and quantity will ___________.
rise; rise
rise; fall
fall; rise
fall; fall
remain the same; rise
If demand for a product decreases, the equilibrium price will __________ and quantity will ___________.
rise; rise
rise; fall
fall; rise
fall; fall
remain the same; rise
If the number of buyers of a product increases, _________ __________.
demand increases
supply increases
demand decreases
supply decreases
If consumers begin liking a product less than they used to _________ __________.
demand increases
supply increases
demand decreases
supply decreases
If the number of sellers of a product increases, _________ __________.
demand increases
supply increases
demand decreases
supply decreases
If a technological improvement allows a product to be made more cheaply than before, _________________.
demand increases
supply increases
demand decreases
supply decreases
If consumers' incomes fall, in the market for a normal good, __________________.
demand increases
supply increases
demand decreases
supply decreases
If the government imposes a per-unit tax on sellers of a good _______________.
demand increases
supply increases
demand decreases
supply decreases
If buyers like a product more than they used to, _________
demand increases, causing equilibrium price and quantity to increase
demand decreases, causing equilibrium price and quantity to decrease
demand decreases, causing equilibrium price to increase and quantity to decrease.
supply increases, causing equilibrium price and quantity to increase
supply increases, causing equilibrium price and quantity to decrease
If the cost of producing a product increases, _______________.
demand increases, causing equilibrium price and quantity to increase
demand decreases, causing equilibrium price and quantity to decrease
demand decreases, causing equilibrium price to increase and quantity to decrease.
supply increases, causing equilibrium price and quantity to increase
supply decreases, causing equilibrium price to increase and quantity to decrease
If the government imposes a price ceiling below the equilibrium price, quantity demanded will be ___________ than quantity supplied. This is called a ___________.
less; shortage
greater; shortage
less; surplus
greater; surplus
If the government imposes a price floor above the equilibrium price, quantity demanded will be ___________ than quantity supplied. This is called a ___________.
less; shortage
greater; shortage
less; surplus
greater; surplus
