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Worksheets

Price theory

Total questions: 15

Worksheet time: 29mins

Name
Class
Date
1.

Where suppliers and consumers meet is called the equation point.

a)

True

b)

False

2.

A famous rock star dies. How does this affect the market for his/her music and memorabilia?

Which statement is not true?

a)

Demand will decrease for the star's possessions.

b)

Supply will increase making more copies of the music may be making a memorable album with hit songs

c)

Price will decrease

3.

DVDs are replaced by Netflix and Youtube.

Which statement is not true?

a)

Demand will decrease for DVD's

b)

Supply will increase for DVD's

c)

Price will slightly decrease because more DVD's are sold

4.

H&M has a big summer sale at the end of the season.

Which statement is true?

a)

Demand will decrease for the clothing - therefore the sale

b)

Demand will increase for the clothing

c)

Price will stay the same

d)

The supply of summer clothing will increase

5.

A new supplier of umbrellas enters the market.

Which statement is true?

a)

Demand will stay the same

b)

Demand will increase

c)

Demand will decrease

6.

A new supplier of umbrellas enters the market.

Which statement is true?

a)

Supply will stay the same

b)

Supply will increase

c)

Supply will decrease

7.

A new supplier of umbrellas enters the market.

Which statement is true?

a)

The price will likely stay the same

b)

The price will likely increase

c)

The price will likely decrease

8.

When Starbucks entered the market what would happen to the supply of coffee?

a)

Supply will stay the same

b)

Supply will increase

c)

Supply will decrease

9.

When Starbucks entered the market what would happen to the prices of Seattle coffee to keep their customers?

a)

Prices will stay the same

b)

Prices will increase

c)

Prices will decrease

10.

What would likely happen to the supply and demand of big 4x4's and Suv's if petrol goes up?

a)

Supply and demand will increase

b)

Supply and demand will decrease

c)

Prices for the 4x4's and Suv's will increase

d)

Supply will go down and demand will go up

11.

Complete the sentence -

When prices increase supply

a)

Increase

b)

Decrease

c)

Stay the same

12.

Complete the sentence -

When prices increase demand

a)

Increase

b)

Decrease

c)

Stay the same

13.

The season can have an effect on supply and demand.

a)

True

b)

False

14.

The income levels in a country can have an effect on supply and demand.

a)

True

b)

False

15.

The x-axis on the supply and demand curve will be where prices are depicted.

a)

True

b)

False