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Practice (DEMAND & SUPPLY)

Total questions: 15

Worksheet time: 12mins

Name
Class
Date
1.

What is demand?

a)

Willingness to buy a specific good and services for a given price

b)

Willingness to sell a specific good and services for a given price

c)

An increase in the price, a decrease in the quantity demanded

d)

An increase in the price causes an increase in the quantity demanded.

2.

What is supply?

a)

Willingness to buy a specific good and services for a given price

b)

Willingness to sell a specific good and services for a given price

c)

An increase in the price, a decrease in the quantity supplied

d)

An increase in the price causes an increase in the quantity supplied

3.

What is the law of demand?

a)

An increase price causes an increase quantity demanded.

b)

An increase in the price, a decrease in the quantity supplied

c)

An increase in the price, a decrease in the quantity demanded

d)

An increase in the price causes an increase in the quantity supplied.

4.

What is the law of supply?

a)

An increase in the price, a decrease in the quantity supplied

b)

An increase price causes an increase quantity demanded.

c)

An increase in the price, a decrease in the quantity demanded

d)

An increase in the price causes an increase in the quantity supplied

5.

If price is RM8 per unit, quantity demanded will equal:

a)

4 units

b)

6 units

c)

8 units

d)

10 units

6.

If quantity demanded are 10 units, price will equal:

a)

RM12

b)

RM10

c)

RM8

d)

RM2

7.

Calculate the demand function when the price increase from RM2 to RM4 and quantity demanded decrease from10 units to 8 units?

a)

Qd=12-1P

b)

Qd=10+2P

c)

Qd=12+1P

d)

Qd=10-2P

8.

What are the determinants of demand?

i. Technology

ii. Taste

iii. Income

iv. Price of related goods

a)

i and ii

b)

ii, iii, iv

c)

ii and iii

d)

i, ii and iv

9.

If price is RM12 per unit, quantity supplied will equal:

a)

9 units

b)

6 units

c)

3 units

d)

12 units

10.

If quantity supplies are 18 units, price will equal:

a)

RM21

b)

RM15

c)

RM12

d)

RM9

11.

Calculate the supply function when the price falls from RM12 to RM9 and quantity supplied drop from 9 units to 6 units?

a)

Qs = 3 - 1P

b)

Qs = 4 + 2P

c)

Qs = 3 + 1P

d)

Qs = 4 - 2P

12.

Given demand function: Qd = 600 -20P, Supply function: Qs = 400+20P. Equilibrium price and output are

a)

P = RM6 and Q = 100

b)

P = RM2 and Q = 100

c)

P = RM3 and Q = 500

d)

P = RM5 and Q = 500

13.

The equilibrium price in this market is equal to:

a)

RM3 per unit

b)

RM5 per unit

c)

RM4 per unit

d)

RM6 per unit

14.

At a price of RM3, there is:

a)

Excess demand (a shortage) of 6 units

b)

Excess demand (a shortage) of 12 units

c)

Excess supply (a surplus) of 6 units

d)

Excess supply (a surplus) of 12 units

15.

At a price of RM6, there is:

a)

Excess demand (a shortage) of 6 units

b)

Excess demand (a shortage) of 12 units

c)

Excess supply (a surplus) of 6 units

d)

Excess supply (a surplus) of 12 units