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Supply and Demand Equilibrium, Surplus, and Shortage 1

Total questions: 21

Worksheet time: 11mins

Name
Class
Date
1.

Supply and demand determine

a)

needs and wants.

b)

all goods produced

c)

the price for a good or service

d)

all of the other options

2.

Equilibrium

a)

when there is a surplus

b)

when there is a shortage

c)

when there is both a surplus and a shortage

d)

when the producer and consumers agree on a price

3.

The law of demand says

a)

producers will supply more when prices decrease

b)

producers will supply more when prices increase

c)

consumers will buy more when prices increase

d)

consumers will by less when prices increase

4.

A producer will cause a shortage,

a)

if the price for a good is set too high.

b)

if the price for a good is set too low.

c)

if the price is set att the equilibrium point

d)

none of the other options

5.

A price floor is when

a)

the government sets a mximum price

b)

the government sets a minimum price

c)

the government allows the market to decide the price for a good

d)

all of the other options

6.

On a supply and emand graph, one can find the equilibrium price by locating

a)

only the demand curve

b)

only the supply curve

c)

where the demand and supply cross/intersect

d)

the title of the graph

7.

A producer will cause a surplus

a)

if the price of a good is set too high

b)

if the price of a good is set too low

c)

if prices is set at the equilibrium point

d)

none of the other options

8.

The law of supply says

a)

producers will supply more when prices decrease

b)

producers will supply more when prices increase

c)

consumers will buy more when prices decrease

d)

consumers will buy less when prices increase

9.

Which factors can change/shift supply or demand?

a)

income, tastes, population

b)

taxes and subsides

c)

cost of production and competition

d)

all of the other options

10.

A price ceiling is when

a)

the government sets a maximum price for a good

b)

the governmnet sets a minimum price of a good

c)

the government allows the market to decide the price for a good

d)

all of the other options

11.

__________ occurs when there are too many goods; extra goods that could not be sold

a)

equilibrium

b)

shortage

c)

surplus

d)

price ceiling

12.

Anytime a producer set the price _______ the equilibrium price, a shortage will occur.

a)

above

b)

below

c)

at

13.

At the equilibrium price, demand and supply are balanced out; the amount demanded by consumers will ________ the amount supplied.

a)

be higher than

b)

be lower than

c)

equal

d)

cancel

14.

Which is true if equilibrium is present in a market?

a)

The price of the product will tend to rise.

b)

The price of the product will tend to fall.

c)

Quantity demanded exceeds quantity supplied.

d)

Quantity demanded equals quantity supplied.

15.

In the graph, what happened to the equilibrium price when the supply curve moved from S1 to S2?

a)

It indicated a decrease in demand.

b)

It indicated an increase in demand.

It did not change.

c)

The equilibrium price went up.

d)

The equilibrium price went down.

16.

_______ is the amount of a good that consumers are willing to buy.

a)

demand

b)

supply

c)

surplus

d)

shortage

17.

_______ is when there is not enough of a good to meet demand.

a)

demand

b)

supply

c)

surplus

d)

shortage

18.

_______ is the amount of a good a producer is willing to make for sale.

a)

demand

b)

supply

c)

surplus

d)

shortage

19.

_______ is when the producer and the consumers both accept and agree on a price.

a)

equilibrium

b)

price ceiling

c)

surplus

d)

shortage

20.

_______ is when the government sets a maximum price for a good.

a)

equilibrium

b)

price ceiling

c)

surplus

d)

shortage

21.

To decrease a surplus of goods, a business will most likely __________ the price.

a)

raise

b)

lower

c)

increase

d)

leave it the same