WorksheetsCSmith Economics Unit 2: Supply and Demand
Total questions: 20
Worksheet time: 17mins
The curve pictured represents...
The total supply of a good in the market
The total demand of a good in the market
Prices at any point in the market
Consumer expectations in the market
According to the Law of Demand, if price goes up, what happens to demand?
Supply increases
Demand decreases
Supply decreases
Incomes rise
Which of the following describes an increase in demand due to a natural disaster?
A hurricane in forecasted, so people move out of Florida
There is expected to be a war in Russia, so weapons makers increase production
Wildfires are spreading in California, so more consumers want fire insurance
A tsunami is predicted to hit the coast, so construction is halted
The price of steak goes up, so the demand for hamburger increases. Hamburger is the _________ good here.
Luxury
Popular
Substitute
Complementary
The price of hotdogs increases, so the demand for hotdog buns decreases. What type of goods are these two items?
Complementary
Luxury
Inferior
Superior
A shift to the right, for either supply or demand, indicates what?
An increase
A decrease
No change
A change in price
A natural disaster would result in a
Supply curve shift to the left
Supply curve shift to the right
No shift
movement up the supply line
Which of the following describes the Income Effect when dealing with demand in Economics?
The price of hotdogs goes up, so demand for hotdog buns decreases
The price of tea increases, so demand for coffee increases
An item goes on sale, so demand increases
The price of ammo increases after WWIII starts
Which of the following correctly describes quantity supplied (Qs) in Economics?
The amount of something people want
The amount available for sale of any good or service
The amount of a product or service sold
The value placed on an item by supply and demand forces in a market
Which of the following describes the relationship between Price and Quantity Supplied (Qs) according to the Law of Supply?
Price goes up, so Supply stays the same
Price drops, so Supply increases
Price for one item increases, so Demand for that item decrease
If Price changes, Supply will change in the same direction
The curve pictured represents...
The total supply of a good in the market
The total demand of a good in the market
Prices at any point in the market
Consumer expectations in the market
Which of the following would result in a movement upwards on the line of a Supply Curve graph for oranges?
Price increases
Price decreases
A hurricane wipes out the orange trees
A new breed of orange trees becomes popular
Which of the following non-price factors best explains the scenario - Multiple stores in the area that sell video games are closing due to online shopping. The supply of video games in the local market has decreased, shifting the supply curve to the left.
Natural disaster
New technology in the market
Decrease in number of sellers
Increase in incomes for local shoppers
If the government passes a law legalizing a previously banned action, what will happen to the supply curve for that item?
It will not change
It will shift to the right
It will shift to the left
It will disappear
On a market graph (has both supply and demand curves), where is the equilibrium price found?
At the top of the Supply curve
Below the intersection of Supply and Demand
At the bottom of the Demand curve
Where Supply and Demand curves intersect
If the price is set below the actual equilibrium price, what will occur in that market?
Demand will decrease
Supply will decrease
A shortage will happen
A surplus will develop
In the graph shown, price is set $20. What will occur in this market?
A shortage
A surplus
An decrease in price
A market failure
When the government sets a price instead of allowing supply and demand to create an equilibrium price, it is called a...
Price control
Legal price
Communism
Socialism
Rent control is a famous example of a
Price Floor
Price Ceiling
Communistic Program
Equilibrium Price
To be effective, a price control must do what?
Shift supply curves to the left
Shift demand curves to the right
Lead to a market change
Eliminate black market sales
