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Price Determination Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is the Equilibrium Price also known as?

a)

Surplus Price

b)

Market Clearing Price

c)

Demand Price

d)

Shortage Price

2.

What is the situation called when the quantity demanded is greater than the quantity supplied?

a)

Excess Supply

b)

Market Clearing

c)

Surplus

d)

Shortage

3.

Where is the Equilibrium Price determined?

a)

At the highest price point

b)

At the point where market demand and market supply are equal

c)

At the lowest price point

d)

At random points

4.

What happens if the price is set above the Equilibrium Price?

a)

Market Clearing occurs

b)

Shortage occurs

c)

Demand increases

d)

Surplus occurs

5.

In the real-world application of Equilibrium Price Determination for movie tickets, what may theaters do to reach equilibrium during the release of highly anticipated films?

a)

Increase ticket prices

b)

Stop selling tickets

c)

Keep ticket prices the same

d)

Decrease ticket prices

6.

In a market there is a surplus of a good. Which change would cause the market to come to an equilibrium?

a)

A decrease in demand

b)

A fall in price

c)

A rise in price

d)

An increase in supply

7.

How is the Equilibrium Price determined using Demand and Supply curves?

a)

By setting the price randomly

b)

By only looking at the supply curve

c)

By finding the point where demand and supply curves intersect

d)

By only looking at the demand curve

8.

What is a feature of a market in equilibrium?

a)

  Demand exceeds supply.

b)

No profits are earned.

c)

The market will clear.

d)

There will be a surplus of products.

9.

What may transit authorities do during peak travel times to reach equilibrium for bus fares?

a)

Decrease bus fares

b)

Increase bus fares

c)

Keep bus fares the same

d)

Stop bus services

10.

What is the Equilibrium Quantity?

a)

The lowest quantity supplied

b)

The highest quantity demanded

c)

The quantity demanded only

d)

The quantity demanded and supplied at the equilibrium price

11.

Which statement must be correct if a market is in disequilibrium?

a)

  Quantity demanded and quantity supplied are equal.

b)

The government must intervene if anything is to be sold.

c)

There can be no changes to demand or supply.

d)

There is excess supply or excess demand.

12.

The market for apples is represented by the following demand and supply functions: Qd = 30 – P; Qs = 15 + 2P. What is the equilibrium quantity?

a)

    $10

b)

   $5

c)

  $15

d)

  $20

13.

The market for apples is represented by the following demand and supply functions: Qd = 30 – P; Qs = 15 + 2P. What is the equilibrium quantity?

a)

    10 units

b)

     15 units

c)

   20 units

d)

    25 units

14.

The diagram shows the demand and supply for apples. To what extent is the market for apples in disequilibrium at a price of $2.50 per kilo?

a)

Demand exceeds supply by 200 000 tonnes.

b)

Demand exceeds supply by 400 000 tonnes.

c)

Supply exceeds demand by 200 000 tonnes.

d)

Supply exceeds demand by 400 000 tonnes.

15.

The table shows the demand and supply schedules for rice. The current price is $2.00 per kilo. What will happen if the price is reduced to $1.00 per kilo?

a)

  The market will move from surplus to shortage.

b)

The demand schedule will shift to the left.

c)

The market will move from shortage to surplus.

d)

The supply schedule will shift to the right.