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Supply & Demand

Total questions: 25

Worksheet time: 25mins

Name
Class
Date
1.
For the law of demand, as price rises, what happens to quantity demanded?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
2.
For the law of supply, as price rises, what happens to quantity supplied?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
3.
When quantity supplied and quantity demanded is equal
a)
surplus
b)
shortage
c)
equilibrium
d)
law of demand
4.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage
5.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
6.

Supply is

a)

how much consumers are willing to  buy.

b)

how much a producer (a business) is  able and willing to make for sale to  consumers.

c)

the goods that are left over after a  sale.

d)

All of the above

7.

Assume the image is showing the market for apples. Which of the headlines could indicate the pictured shift is occurring in the market?

a)

Pesticides on apples linked to mouth cancer.

b)

Storms destroy apple orchards.

c)

An apple a day really does keep the doctor away.

d)

New genetic strain leads to apple trees that produce twice as many apples.

8.

New technology advances the rate at which furniture can be assembled. Why does this change the supply?

a)

Change in cost of production

b)

Changes in number of producers

c)

Changes in expectations

9.

Assume the image is showing the market for apples. Which of the headlines could indicate the pictured shift is occurring in the market?

a)

Pesticides on apples linked to mouth cancer.

b)

Storms destroy apple orchards.

c)

An apple a day really does keep the doctor away.

d)

New genetic strain leads to apple trees that produce twice as many apples.

10.

Which of the following is NOT a determinant of the supply of peanut butter?

a)

The price of peanuts

b)

The wages of peanut butter factory workers

c)

The income of peanut butter consumers

d)

Existing peanut butter making technology

11.

Which of the following will cause an increase in demand for snowboards?

a)

More costly production methods

b)

A decrease in the price of lift tickets at resorts in Colorado

c)

A decrease in consumer income

d)

A decrease in the population

12.

Which of the following defines "Complementary Goods?"

a)

Goods that can be used to replace the purchase of similar goods when prices rise

b)

Goods that are commonly used with other goods

c)

Goods that are independent of other markets

13.

If only the price for a good or service changes, does the demand curve shift? Why or why not?

a)

Yes, Price shifts the demand curve to the right because less people are being goods

b)

Yes, Price shifts the demand curve to the left because more people are buying goods

c)

No, Because price does not shift the curve. Price stays on the line

d)

No, because price does not impact the points on the curve

e)

Yes and No. The price shifts the curve sometimes, but not always

14.

Americans revive their love of SUV’s and the newly remodeled, but still “gas guzzling” Hummer. What happens to the market for gasoline?

a)

Demand for gasoline will decrease

b)

Demand for gasoline will increase

c)

Demand for gasoline will stay the same

15.

A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?

a)
b)
c)
d)
16.

When the gov't pays money to businesses, usually to encourage them to produce a certain product..

a)

taxes

b)

regulations

c)

competition

d)

subsidies

17.
The movement from Point A to Point B represents a(n)
a)

increase in the price.

b)

decrease in the quantity supplied.

c)

shift in the supply curve.

d)

All are correct.

18.
Choose the example that goes best with an oligopoly.
a)
apples
b)
cell phone providers
c)
utilities
d)
clothing
19.
List the four market structures in order from least competitive to most competitive.
a)
Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition
b)
Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition
c)
Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
d)
Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly
20.

An example of a public good is...

a)

Firefighters

b)

police officers

c)

parks

d)

all answers are correct

21.

uncompensated side effects that either benefit or harm a 3rd party not involved in the activity

a)

economics

b)

map

c)

spillover effects

22.
If the government creates a price ceiling of $30, which one of the following statements is correct?
a)
The quantity demanded = 60
b)
The quantity supplied = 160
c)
There is a surplus of 100
d)
There is a shortage of 100
23.

An ___________ is when a few companies have significant control over a given market.

a)

partnership

b)

oligopoly

c)

monopoly

d)

revenue

24.

Price ceiling is located above the equilibrium price.

a)

True

b)

False

25.

What is monopolistic competition?

a)

A type of market structure where many companies are present in an industry, and they produce similar but differentiated products.

b)

A type of market structure where many companies are present in an industry, and they produce the same exact products.

c)

The game monopoly

d)

When people make products that are not similar to one another.