WorksheetsAS-Equilibrium practice 2
Total questions: 10
Worksheet time: 10mins
In 2008 a disease killed a significant number of sheep used to produce wool.
How would the short-run effect be shown on a demand and supply diagram for
A a movement down the existing supply curve
B a movement up the existing supply curve
C a shift to the left of the supply curve
D a shift to the right of the supply curve
The government imposes a maximum price of P2 on a product.
What will be the position after this action?
A an equilibrium with price P1 and quantity Q1
B an equilibrium with price P2 and a quantity between Q2 and Q3
C an oversupply in the market by Q2Q3
D a shortage in the market of Q2Q3
The table shows the market demand for a product and the individual supply of the three firms X, Y and Z in the industry.
What is the equilibrium market price?
A 40$
B 30$
C 20$
D 10$
Domino Pizza, the largest US pizza chain, said that its profits had been reduced by price inflation on ingredients and by a reduction in consumers’ disposable income. How would these changes affect the demand and supply curve for its products?
A
B
C
D
Global stocks of cod are currently under threat due to over-fishing whilst there are plentiful supplies of the less popular Alaskan pollock.
How might the price mechanism operate to limit the depletion of fish stocks?
A The price of both cod and Alaskan pollock will fall.
B The price of both cod and Alaskan pollock will rise.
C The price of cod will fall whilst the price of Alaskan pollock will rise.
D The price of cod will rise whilst the price of Alaskan pollock will fall.
The table shows demand and supply schedules for red peppers. The equilibrium price is initially 15 cents per kg.
The government pays a subsidy of 10 cents per kg to producers.
What will be the new equilibrium price charged to consumers?
A 5 cents
B 10 cents
C 15 cents
D 20 cents
The diagram shows the market for new houses.
What would cause the change in the market equilibrium position from X to Y?
A a fall in income tax and a rise in building costs
B a fall in interest rates and increased efficiency in house-building
C a fall in population and a rise in taxes on building materials
D a rise in building subsidies and a fall in incomes
When demand for a good falls, its price falls.
What is the function of the price fall?
A to eliminate shortages
B to reduce consumer surplus
C to send a signal to producers
D to stimulate a further fall in demand
The diagrams show a change in demand from D1to D2and a change in supply from S1to S2 for four different goods. Which diagram illustrates the good for which additional new uses have been found and which receives an increase in government subsidy?
A
B
C
D
The diagram shows the demand and supply curves for parking spaces in a hospital car park.
The managers decide to rely on the price mechanism to allocate parking spaces at the hospital. What is required for this to work?
A Alternative means of transport must be provided for those unable to afford price OP.
B A survey will be needed to find out the amount users are willing to pay.
C The capacity of the car park will need to be expanded.
D The price charged for parking spaces must be OP.
