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WorksheetsWHALES Economics: Demand & Supply 2
Total questions: 10
Worksheet time: 10mins
What is generally considered to be one of the advantages of using the price mechanism as a rationing device?
A It ensures that goods are allocated in accordance with the needs of consumers.
B It ensures that suppliers cannot make excessive profits.
C No one can be prevented from consuming a good if they are willing and able to pay the market price.
D The allocation of goods is determined by consumers’ wealth.
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
A change in market conditions causes a reduction in supply. This results in a higher price for the product, which has a downward-sloping demand curve. What must be the outcome of this higher price?
A an increase in the factors employed in the industry
B an increase in producer’s revenue
C a reduction in the quantity demanded
D a reduction in the demand for substitutes
A
B
C
D
A supply curve for a commodity is drawn to show how quantity supplied varies with
A government taxes.
B income.
C tastes.
D the price of the commodity.
A
B
C
D
In 2010, floods caused severe damage to wheat production. How would this be shown on a market demand and supply diagram for wheat?
A
B
C
D
The market for a normal good is in equilibrium at point X. Consumers’ incomes fall and the cost of producing the good rises. In which area of the diagram will the new equilibrium be?
A
B
C
D
Which statement indicates that the price mechanism is allocating resources successfully?
A Belgian chocolate companies increase supplies to China because of higher than expected sales.
B Train operators in India lower fares because of overcrowding on trains.
C US supermarkets throw away large amounts of food because of misjudging demand.
D World fish stocks decline because of over-fishing.
A
B
C
D
The table shows the demand for tickets for a concert.
The capacity of the concert hall is 6000. What price should be charged to maximise total revenue?
A $20
B $30
C $40
D $50
A
B
C
D
The table shows the demand and supply schedules for a good before and after the imposition of a tax. What was the amount of the tax?
A $1
B $2
C $3
D $4
A
B
C
D
The demand curve in the diagram shows the relationship between the number of car journeys and the cost of a car journey. What would cause the demand curve to shift to the left?
A a reduction in car tax
B a reduction in petrol prices
C a reduction in public transport prices
D the introduction of tolls on motorways
A
B
C
D
