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Supply and Demand Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

If supply increases then price

a)

decreases

b)

increases

c)

stays same

d)

can't tell without more info

2.

If demand increases then price

a)

decreases

b)

increases

c)

stays same

d)

can't tell without more info

3.

If supply decreases then price

a)

decreases

b)

increases

c)

stays same

d)

can't tell without more info

4.

If demand decreases then price

a)

decreases

b)

increases

c)

stays same

d)

can't tell without more info

5.

If demand decreases while supply increases then prices will

a)

decrease

b)

increase

c)

stays same

d)

can't tell without more info

6.

If demand increases while supply decreases prices will

a)

decrease

b)

increase

c)

stays same

d)

can't tell without more info

7.

The news has just reported that people have been poisoned after buying tylenol bottles that had been tampered with. What will happen to demand

a)

increase

b)

decrease

c)

stay the same

d)

not info info to tell

8.

The news has just reported that people have been poisoned after buying tylenol bottles that had been tampered with. What factor is going to cause a change in its demand?

a)

price change

b)

expectation of buyers

c)

population

d)

quotas

9.

A storm blew a large cargo ship off course blocking the Suez Canal. Other ships had to reroute around Africa. What happened to the supply of goods going to Europe?

a)

increase

b)

decrease

c)

stay the same

d)

not info info to tell

10.

A storm blew a large cargo ship off course blocking the Suez Canal. Other ships had to reroute around Africa. What factor is affecting the supply of goods to Europe?

a)

price of inputs

b)

substitutes

c)

weather (acts of God)

d)

number of firms in the industry

11.

During the Covid shutdown, the U.S. and Canada closed their borders to each other. Much of our lumber comes from Canada. Would this affect the supply or demand of lumber?

a)

supply

b)

demand

c)

not enough info

12.

During the Covid shutdown, the U.S. and Canada closed their borders to each other. Much of our lumber comes from Canada. What probably happened to the supply of available lumber in the U.S.

a)

increased

b)

decreased

c)

not enough info

13.

During the Covid shutdown, the U.S. and Canada closed their borders to each other. Much of our lumber comes from Canada. What probably happened to the price of lumber here in the U.S.?

a)

increased

b)

decreased

c)

not enough info

14.

Electrolux made the first robotic vacuum in 1996. Since then, many companies are producing self-moving, robotic vacuums. What non-price factor is affecting supply now?

a)

population

b)

substitutes

c)

number of firms in the industry

d)

price of inputs

15.

With so many companies now producing robotic vacuums, what has probably happened to prices of the vacuums?

a)

increase

b)

decrease

c)

not enough info

16.

The demand for a Louis Vuitton purse increased dramatically at Christmas time when the company ran a 10% off sale. This means the demand for this designer purse is

a)

elastic

b)

inelastic

c)

proportional

17.

Goods with an inelastic demand are usually extremely cheap or

a)

a necessity

b)

a luxury

c)

has plenty of substitutes

18.

The demand for salt is

a)

elastic

b)

inelastic

c)

proportional

19.

If the price goes up, you may not see the supply go up immediately because of

a)

competition

b)

time lags

c)

quotas

20.

If price goes up, you may not see supply go up if

a)

the company gets competition

b)

there is an increase in the cost of inputs

c)

the population moves out of an areas