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Supply and Demand Practice Test

Total questions: 53

Worksheet time: 38mins

Name
Class
Date
1.

Things that you can buy or sell are called:

a)

Goods

b)

Needs

c)

Services

d)

Wants

2.
Lucas fixes his friend's sink.  He is providing a _____________.
a)
trade
b)
opportunity cost
c)
product
d)
service
3.
The desire or willingness a consumer has to purchase a good or a service is called?
a)
shortage
b)
supply
c)
price
d)
demand
4.
The amount of a good or service that is available to consumers
a)
Supply
b)
Demand
c)
Saver
d)
Spender
5.
Cold weather in Florida has damaged this year’s orange crop. Farmers have only half of the usual amount of oranges to sell. What will happen to the price of oranges?
a)
The price will go up.
b)
The price will go down.
6.

When the demand for a product or service is higher than the supply this causes what?

a)

shortage

b)

consumer

c)

surplus

d)

equilibrium

7.

Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?

a)

The price will go up.

b)

The price will go down.

8.

Which statement describes the law of demand?

a)

As prices rise, quantity demanded decreases

b)

As prices rise, demand decreases.

c)

As prices fall, quantity demanded decreases.

d)

As prices fall, demand decreases.

9.

Which explains why a supply line is upward sloping?

a)

the Law of Demand states there is an indirect relationship between price and quantity

b)

the Law of Supply states there is a direct relationship between price and quantity

c)

the Law of Supply compares marginal costs and marginal benefits in a constant rate

d)

the Law of Demand shows a positive relationship between two goods, creating the slope

10.

Which is an example of the Law of Demand at work?

a)

The price of the pizza goes up when the price of cheese goes up.

b)

Demand for pizza goes down when tacos become more popular

c)

The price of pizza falls when the demand for pizza falls

d)

Demand for pizza rises when the price of pizza falls

11.

The amount of a good or service that producers are willing and able to sell at all possible prices during a given period of time.

a)

Supply

b)

Demand

c)

Factor of Production

d)

Production

12.

The market equilibrium price is the price at which

a)

surpluses depress the number of goods supplied

b)

shortages and surpluses will have no effect on the market

c)

the government will not intervene in the market

d)

the quantity demanded is the same as the quantity supplied

13.

What is the Equilibrium Price?

a)

1

b)

2

c)

3

d)

4

14.

When there is a shortage the price will usually?

a)

rise

b)

fall

c)

remain the same

d)

equilibrium

15.

As the price of an item goes down, the demand for it tends to go

a)

up

b)

down

c)

stays the same

16.

When the supply of something is high, the price for it is

a)

high

b)

low

c)

not affected

17.

When the supply of something is low, producers can charge

a)

less

b)

more

18.

The price of something is the result of on-going negotiation between producers and consumers based on

(a)  

19.
A person who buys goods and services
a)
consumer
b)
entrepreneur
c)
resource
d)
currency
20.
another word for money
a)
barter
b)
economics
c)
currency
d)
price
21.
How much people want something
a)
supply
b)
demand
22.
Something we pay for that we can touch
a)
goods
b)
services
23.
Something we use
a)
resource
b)
scarcity
c)
demand
d)
supply
24.
The idea that resources are limited; we don't have an unlimited supply of what we want
a)
scarcity
b)
supply
c)
demand
d)
inflation
25.
Something we pay to use fora certain amount of time
a)
services
b)
goods
26.
How much of something is available
a)
supply
b)
demand
27.
The law of demand states that if the price of CD’s rise, consumers will
a)
Buy more CDs
b)
Buy fewer CDs
c)
Quantity demanded will not change
28.
The law of supply states that if the price of CD’s rise, suppliers will
a)
Supply more CDs
b)
Supply fewer CDs
c)
Quantity supplied will not change
29.
What does a “surplus” (extra amount) of goods in a market imply?
a)
Prices are too high
b)
Prices are too low
c)
Supply is too low
d)
Demand is too high
30.
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
31.
Due to a disappointing economy, Americans are cutting back on the family vacation road trips. 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
32.

What will happen to the price of soccer balls if more and more boys and girls are learning to play soccer?

a)

The price will increase

b)

The price will decrease

33.

When price increases, quantity demanded

a)

increases

b)

decreases

c)

supply would decreases, not quantity supplied

d)

supply would increase, not quantity supplied

34.

When price increases, quantity supplied

a)

increases

b)

decreases

35.

When price decreases, quantity supplied

a)

increases

b)

decreases

36.

Scarcity

a)

When you're scared

b)

A city in North Carolina

c)

When there is not enough of something

37.

Supply

a)

An African animal

b)

The amount of something available to be bought

38.

Demand

a)

How much people want to buy something

b)

The most important person

39.

Which illustration depics a demand curve that consists of a point, where 3 units are demanded at a price of $9

a)
b)
40.

Select all that apply. The law of supply states that__________.

a)

as price increases, supply increases

b)

as price increases, demand decreases

c)

as prices decrease, supply increases

d)

as price decreases, supply decreases

41.

Which graph depicts a supply curve?

a)

A

b)

B

c)

C

d)

D

42.

Supply refers to the actions of _________, whereas demand refers to the actions of ________.

a)

producers, consumers

b)

quantities, prices

c)

consumers, producers

d)

prices, quantities

43.
In general, if the price of a good or service goes down, what happens to the demand for that good or service?
a)
demand goes up
b)
demand stays the same
c)
demand goes down
d)
none of the above
44.
a person or company that makes, grows, or supplies goods to sell is called the?
a)
damand
b)
price
c)
producer
d)
shortage
45.
In general, if the price of a good or service goes up, what happens to the demand for that good or service?
a)
demand goes up
b)
demand stays the same
c)
demand goes down
d)
none of the above
46.
The week before Halloween, pumpkin patches all around the country sell lots of pumpkins. What will happen to the price of pumpkins on the day after Halloween?
a)
The price will go up.
b)
The price will go down.
47.
An individual or group who purchases goods.
a)
producer
b)
consumer
c)
goods
d)
services
48.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
49.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage
50.
If a price is below the equilibrium price it creates a...
a)
shortage
b)
surplus 
c)
market price 
d)
supply
51.
If a price is above equilibrium price, it creates a...
a)
shortage
b)
surplus
c)
market price
d)
demand
52.
When quantity supplied and quantity demanded is equal
a)
surplus
b)
shortage
c)
equilibrium
d)
law of demand
53.
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