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Price Equilibrium

Total questions: 14

Worksheet time: 11mins

Name
Class
Date
1.

What happens if there is surplus?

a)

Sellers offer their products by lowering the price

b)

Sellers offer their products by raising the price

c)

Buyers are easy to find

d)

Sellers stick to the price they are offering

2.

Which of the following happens when the Qs is greater than the Qd?

a)

Equilibrium

b)

Surplus

c)

Shortage

d)

Consumer surplus

3.

It is an implicit agreement between the buyers and the sellers

a)

Equilibrium

b)

Surplus

c)

Shortage

d)

Waste

4.

The Law of Demand states that as price decreases...

a)

Quantity demanded decreases

b)

Quantity demanded increases

c)

Production increases

d)

Quality Decreases

5.
If the government set the price at $700, would that be a price ceiling or floor?
a)
Price Ceiling
b)
Price Floor 
c)
Neither
6.
If the government set the price at $300, what would be the result?
a)
Surplus of 4,000
b)
Surplus of 2,000
c)
Shortage of 4,000
d)
Shortage of 2,000
7.

A review of the jargon: Is the minimum wage a “price ceiling” or a “price floor?

a)

price ceiling

b)

price floor

8.

A review of the jargon: Is rent control a “price ceiling” or a “price floor?”

a)

price ceiling

b)

price floor

9.

Is there a surplus or a shortage when the price is $10?

a)

surplus

b)

shortage

10.

What does this graph illustrate about surplus, shortage, and equilibrium price?

a)

The Price is set above $6 will create a surplus

b)

At $6 dollars, you will have equilibrium.

c)

The price is set below $6 dollars, will c create a shortage

d)

The graph makes no sense

11.

When a price ceiling is in place keeping the price below the market price, what’s larger: quantity demanded or quantity supplied?

a)

Quantity demanded

b)

Quantity supplied.

c)

Indeterminate with the given information.

d)

Neither

12.

Which factor most directly affects the quantity of a good or service supplied in the market?

a)

buyer preferences

b)

the number of consumers

c)

the number of sellers

d)

changes in related goods

13.

What is the result of the price floor in the scenario shown in the graph?

a)

The supply of goods remains constant.

b)

the quantity demanded is equal to the quantity supplied

c)

there is a surplus of available goods

d)

there is a shortage of available goods

14.

Using the chart, determine the impact of household savings on the nation's output of goods and services.

a)

Household savings can boost goods and services to governments.

b)

Household savings can slow down output of goods and services

c)

Household savings mostly impacts the cost of goods and services.

d)

Household savings usually boosts national output of goods and services