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WorksheetsDemand and Supply
Total questions: 20
Worksheet time: 10mins
Law of demand shows the relationship between ____________.
Price and quantity
Price and demand of related goods
Price and demand of the product
All of the above
What is the type of relationship between price and quantity demanded?
Direct
Inverse
Both
Law of demand is ___________
Price increases demand decreases
price increases demand increases
Other things being equal, when price increases demand decreases and vice versa.
Other things being equal, when price increases demand increases.
On the demand graph, price is always plotted on vertical axix.
True
False
Law of Supply states ________________
When price increases demand increases
When price decreases demand increases
Other things being equal, when price increases supply increases.
Other things being equal, when price decreases demand increases.
What is the type of relationship between price and supply?
Direct or Positive
Indirect
Inverse
None
Bread and butter are example of ____________.
Substitute Products
Complimentary products
Joint products
Competitive products
Coke and Pepsi are example of _____________
Complimentary goods
Substitute goods
Joint supply
Competitive supply
What happens to the demand of butter when the price of bread increases?
Decreases
Increases
Remains the same
What happens to the demand of coke when the price of pepsi drops?
Decreases
Increases
No change
Which one is the example of joint supply?
Coke and Pepsi
Lock and key
bread and cake
beef and leather
Which one is the example of competitive supply?
Bread and butter
Beef and leather
Coke and pepsi
Bread and Cake
What happens to the supply of leather when the supply of beef increases?
Increases
Decreases
No effect
If a baker makes more profit from selling cakes than bread then supply of _______ will increase.
Bread
Cakes
Both
If the income of the consumer increases, then demand of the product __________.
Decreases
Increases
The supply of final product ___________ if input prices decreases.
Decreases
Increases
Stays the same
Which area is shortage on an equilibrium graph?
Area below the equilibrium point
Area above the equilibrium point
If market is in equilibrium, there is no need to change the price.
True
False
What is surplus?
When demand is higher than supply
When supply is higher than demand
When demand and supply are equal
None
What is shortage?
When supply is higher than demand
When demand is much higher than supply
Both are equal
