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Demand and Supply

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

What is measured on the vertical axis of a demand curve?

a)

Cost

b)

Price

c)

Supply

d)

Quantity

2.

What happens to people’s willingness and ability to buy a product when its price falls?

a)

A

b)

B

c)

C

d)

D

3.

The diagram shows the demand for chocolate.

What could cause the movement from point X to point Y?

a)

A change in tastes

b)

An increase in income

c)

A fall in the price of chocolate

d)

A successful advertising campaign for chocolate

4.

What is meant by a contraction in demand?

a)

A rise in demand due to a fall in the price of a complement

b)

A reduction in demand due to a rise in the price of the product

c)

A rise in demand due to a rise in the price of a substitute product

d)

A reduction in demand due to a fall in the income of the population

5.

Which of these is showing that a product is the substitute of the other product?

a)
b)
c)
d)
6.

The price of fuel rises. What will happen to the demand for cars?

a)

It will extend

b)

It will contract

c)

It will decrease

d)

It will increase

7.

Which event would cause the demand curve for air travel to shift to the left?

a)

A fall in the cost of air fuel

b)

A fall in the safety of sea travel

c)

A rise in the size of the population

d)

A rise in the price of foreign holidays

8.

The diagram shows the demand curve for coffee in the US.

Why did the quantity demanded move from Q1 to Q2?

a)

Incomes rose in the US

b)

Coffee became cheaper

c)

The price of substitutes for coffee rose

d)

There was a successful advertising campaign by coffee retailers

9.

What is the relationship between demand and price and the relationship between supply and price?

a)

A

b)

B

c)

C

d)

D

10.

How would an increase in supply be illustrated?

a)

A movement up the supply curve

b)

A movement down the supply curve

c)

A shift to the left of the supply curve

d)

A shift to the right of the supply curve

11.

What would cause an increase in the supply of milk?

a)

An increase in the price of cattle feed

b)

The outbreak of a disease affecting cows

c)

An increase in wages paid to farm workers

d)

The introduction of a subsidy to cattle farmers

12.

What would make a supply curve of coffee shift to the left?

a)

Increase in tea price

b)

Decrease in coffee bean’s price

c)

Increase in taxes paid to government

d)

Decrease in delivery cost of coffee to consumer

13.

Which pair of products is an example of joint supply?

a)

Cars and petrol

b)

Beef and leather

c)

Bread and butter

d)

Computers and printers

14.

The diagram shows a shift in the supply curve for cars in China from S1 to S2.

What is the most likely cause of this shift in the supply curve?

a)

An increase in the price of cars in China

b)

A decrease in the corporation tax on in China

c)

An increase in the wages of Chinese car workers

d)

A new subsidy given to Chinese car manufacturers

15.

What cause a contraction in supply?

a)

A decrease in the cost of production

b)

A decrease in the price of a product produced

c)

An increase in the price of a product produced

d)

An increase in the subsidy given by the government to the producers