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WorksheetsWHSS Economics: Demand & Supply
Total questions: 25
Worksheet time: 30mins
Four changes affecting the supply of a good are listed below. What would cause the supply curve to shift to the right?
A an improvement in technology
B an increase in its market price
C a reduction in labour productivity
D the introduction of a sales tax
A
B
C
D
What would not cause a shift in the demand curve for a good?
A a change in incomes
B a change in the price of a substitute good
C a change in the price of the good
D a change in the tastes of consumers
A
B
C
D
What is an example of complementary demand?
A buses and bus fares
B cotton and cotton seed
C televisions and electricity
D wood and sawdust
A
B
C
D
A good is successfully advertised. What is the most likely impact on the demand and supply curves for the good?
A
B
C
D
The diagram shows the supply and demand curves for a good. The market is in equilibrium at point X. What is the excess demand at price P?
A PT
B QR
C QT
D ST
A
B
C
D
The table shows the value of the price elasticity of demand for four products. What would have an increase in sales revenue if prices rose by 10%?
A cars only
B cars and mobile phones
C radios and salt
D salt only
A
B
C
D
A product has a price elasticity of demand that is greater than one. What will happen to total revenue if the price of the product is reduced by 3%?
A It will fall by more than 3%.
B It will fall to zero.
C It will be unchanged.
D It will rise.
A
B
C
D
In 2002 the world price of cocoa was higher than in 2001. Which combination of changes in the demand for and the supply of cocoa would always lead to a rise in price?
A
B
C
D
The diagram shows demand and supply curves for a good. The market is in equilibrium at point X. What would be the new equilibrium position if there were a successful advertising campaign for the good and an increase in the cost of raw materials?
A
B
C
D
In 2003 the US government was asked to stop subsidising tobacco growers. What would happen if the government agreed?
A
B
C
D
What is most likely to cause a shift in the supply curve for oil?
A an increase in purchases of cars
B an increase in the price of oil
C a rise in consumer incomes
D the discovery of new oilfields
A
B
C
D
Tea and sugar are complementary goods. What will happen if the price of tea falls, other things being equal?
A The demand curve for sugar will move to the right.
B The demand curve for tea will move to the right.
C The price of sugar will fall.
D The supply curve of sugar will move to the left.
A
B
C
D
The price of a good is temporarily above the market equilibrium price. What must happen for the market to be brought back to equilibrium?
A
B
C
D
What is not held constant in calculating a demand schedule?
A the incomes of consumers
B the prices of complementary goods
C the price of the good itself
D the tastes of consumers
A
B
C
D
As petrol prices increase, demand for petrol remains constant. What does this say about the price elasticity of petrol?
A The demand is price-elastic.
B The demand is price-inelastic.
C The supply is price-elastic.
D The supply is price-inelastic.
A
B
C
D
What is an important influence on price elasticity of demand?
A average earnings
B tastes of consumers
C the cost of living
D the number of close substitutes
A
B
C
D
In a market there is a shortage of a good. What change would cause the market to come to an equilibrium?
A an increase in demand
B a decrease in supply
C a fall in price
D a rise in price
A
B
C
D
A government wishes to impose a tax on a good to raise revenue. It would be most likely to achieve this aim if the price elasticity of demand for the good were
A high.
B infinite.
C low.
D unitary.
A
B
C
D
A firm changes the price of its product and finds that its revenue increases. What combination of price change and price elasticity of demand would have caused this?
A
B
C
D
Which change would be most likely to cause the earnings of hotel managers in Mauritius to rise more than the earnings of sugar cane workers there?
A a decrease in the supply of sugar cane workers in Mauritius
B a decrease in the price of hotel rooms in Mauritius
C an increase in the productivity of hotel managers in Mauritius
D an increase in the price of sugar cane from Mauritius
A
B
C
D
A demand curve for a product shows the relationship between its price and
A cost of production.
B population changes.
C the income of the consumer.
D the quantity of the product consumed.
A
B
C
D
The following was printed in a magazine. More soft drinks are being consumed than ever before by the 16 – 34 age group. Schweppes, the drink manufacturers, claim that over 45 per cent of their soft drinks are now being consumed without alcohol as people switch away from alcoholic spirits. How would this change be represented on a demand and supply diagram for soft drinks?
A decrease in demand
B decrease in supply
C increase in demand
D increase in supply
A
B
C
D
A firm produces a good with a price elasticity of demand greater than 1. What must the firm experience if there is a fall in the price of this good?
A a decrease in costs
B a decrease in sales
C an increase in revenue
D an increase in profits
A
B
C
D
A product has a totally inelastic price elasticity of demand. What will happen to total revenue if the price of the product falls by 25%?
A It will fall by 25%.
B It will fall to zero.
C It will remain unchanged.
D It will rise by 25%.
A
B
C
D
Which costs will be reduced if a factory decreases the amount of pollution it causes to the environment?
A average costs
B external costs
C fixed costs
D variable costs
A
B
C
D
