WorksheetsSupply & Demand
Total questions: 10
Worksheet time: 5mins
The desire to have some good or service and the ability to pay for it
supply
equilibrium
demand
quantity demanded
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
A change in the price of a good causes people to buy more or less of an item. This best describes the concept of
the demand curve
change in quantity demanded
change in demand
elasticity
The diagram represents a
increase in demand at every price level
decrease in demand at every price level
A change in the quantity supplied
I have no idea
When the price of good A rises, people start to drink good B. In this case, what is good B considered?
luxury good
complementary good
substitute good
normal good
A decrease in the average incomes of consumers will result in which of the following?
A decrease in the demand for goods and services
An increase in the demand for goods and services
A decrease in the supply of goods and services
An increase in the supply of goods and services
Why does demand generally become more elastic over time?
People don't change their shopping behavior over time.
Few substitutes become available.
People buy more products over time.
People have time to find substitutes and change behaviors.
What does cross elasticity measure?
Measures responsiveness of changes in quantity demanded to changes in price.
Measures the responsiveness of the quantity demanded of
a good or service to a change in income.
Measures the responsiveness of the quantity demanded of one good to changes in price of another good.
