WorksheetsUnderstanding Supply and Demand
Total questions: 10
Worksheet time: 5mins
What does supply represent in economic terms?
The total production capacity of a market
The amount of goods sellers have in stock
The relationship between the price of a good and how much sellers are willing to bring to the market
The desire of sellers to produce more goods
What does demand represent in economic terms?
The quantity of a good that consumers purchase at a high price
The relationship between the price of a good and how much of that good people are willing to buy
The constant need for a product regardless of price
The total amount of a good that consumers want
What happens to the demand for a product if its price significantly increases?
It remains unchanged
It fluctuates unpredictably
It decreases
It increases
Who was the first to put the concept of supply and demand in print?
James Steuart
John Locke
John Stuart Mill
Adam Smith
What is the equilibrium price?
The highest price a consumer is willing to pay
The price at which the quantity demanded by consumers is equal to the quantity supplied by producers
The price set by the government for a product
The average cost of producing a good
What did Alfred Marshall contribute to the study of supply and demand?
The concept of natural price
The first printed mention of supply and demand
Supply and demand curves
The idea of market equilibrium
What can cause the supply and demand curves to change?
Government regulations only
Changes in consumer preferences only
Evolving relationships between the price and quantity of a good
Fixed production costs
What was a consequence of the US federal government's price controls on natural gas in the 1960s and '70s?
Increased profitability for gas producers
Natural gas shortages, especially in the Midwest
A stable equilibrium price for natural gas
Decreased consumer interest in natural gas
According to Friedrich Hayek, what is not necessary for someone to know in a free market?
How to produce a good
Why the price of something changed
The law of supply and demand
How to market a product
What did Adam Smith say regulates the market price of every particular commodity?
The cost of production
The proportion between the quantity brought to the market and the demand
The government's intervention
The number of competitors in the market
