WorksheetsEcon U2: Supply, Demand, & Equilibrium
Total questions: 28
Worksheet time: 15mins
What happens to the supply curve when there is an improvement in technology?
It shifts to the left.
It shifts to the right.
It remains unchanged.
It becomes vertical.
Which of the following factors can cause a shift in the demand curve?
Changes in consumer income
Changes in the price of the good itself
Changes in the quantity supplied
Changes in production technology
If the price of coffee increases, what is likely to happen to the demand for tea?
Demand decreases
Demand increases
Demand remains unchanged
Demand becomes perfectly elastic
How does an increase in the cost of raw materials affect the supply curve?
It shifts to the right.
It shifts to the left.
It remains unchanged.
It becomes horizontal.
Explain how a decrease in consumer income affects the demand curve for a normal good.
The demand curve shifts to the right.
The demand curve shifts to the left.
The demand curve becomes steeper.
The demand curve becomes flatter.
What is the likely effect on equilibrium price and quantity if there is an increase in both supply and demand?
Equilibrium price increases, equilibrium quantity decreases.
Equilibrium price decreases, equilibrium quantity increases.
Equilibrium price remains unchanged, equilibrium quantity increases.
Equilibrium price and quantity both increase.
A new tax is imposed on producers of a good. Predict the changes in the supply curve and the new equilibrium.
Supply curve shifts to the right, equilibrium price decreases.
Supply curve shifts to the left, equilibrium price increases.
Supply curve remains unchanged, equilibrium price increases.
Supply curve shifts to the left, equilibrium price decreases.
What is the Law of Demand?
What is the Law of Supply?
Define Equilibrium as it relates to Supply and Demand.
Which of the following lists describes factors that would shift the DEMAND curve?
Changes in Income, Consumer Tastes/Advertising, & Prices of Related Goods (Substitutes/Complements)
Changes in Resource Costs, Changes in Technology, Number of Suppliers
Which of the following lists describes factors that would shift the SUPPLY curve?
Changes in Income, Consumer Tastes/Advertising, & Prices of Related Goods (Substitutes/Complements)
Changes in Resource Costs, Changes in Technology, Number of Suppliers
Which of the following determine whether a product's demand is elastic or inelastic?
Availability of substitutes, necessity of the product, and time available to purchase the product
Which of the following products would have elastic demand?
A new PS5
A suit for an interview this afternoon!
Medicine for your chronic illness
Gas for your car
Which of the following items would have inelastic demand?
A trip to an expensive resort in the Bahamas
Dress for your wedding next year
Your college textbooks... class starts tomorrow!
ANOTHER streaming service...
When do Supply, Demand, and Equilibrium result in a Shortage?
When the price is set above Equilibrium.
When the Quantity Demanded is more than the Equilibrium Price.
When the price is set lower than Equilibrium.
When the price is at Equilibrium
When do Supply, Demand, and Equilibrium result in a Surplus?
When the price is set below Equilibrium.
When the price is at Equilibrium.
When the price is set above Equilibrium.
When the Quantity Supplied is more than the Equilibrium Price.
What would be an example of a shift in the supply curve to the left?
A decrease in the price of raw materials
An increase in the number of Suppliers.
A natural disaster that destroys some factories.
A technological advancement that makes production more efficient
William noticed that an increase in the price of Ruffles will likely:
Decrease the demand for the Lays.
Increase the demand for Lays.
Have no effect on the demand for Lays.
Decrease the supply of the Lays.
Plane Tickets and Hotel Rooms are complements. What happens when the price of plane tickets increases?
What factor would cause a shift in the demand curve to the right?
A decrease in the price of the good
An increase in consumer income
An improvement in the technology used to produce the good
A decrease in the number of suppliers
What does a leftward shift in the supply curve indicate?
Increase in supply
Decrease in supply
Increase in demand
Decrease in demand
What happens at the Equilibrium Price and Quantity in a market?
Demand exceeds supply
Supply exceeds demand
Quantity demanded equals quantity supplied
There is no demand or supply
What is Market Equilibrium?
It is when demand is greater than supply.
It is when supply is greater than demand.
It is when demand equals supply.
It is when the government sets the price for goods and services.
How does an increase in the number of suppliers affect the supply curve?
It causes a movement along the supply curve.
It causes the supply curve to shift to the left.
It causes the supply curve to shift to the right.
It does not affect the supply curve.
A decrease in the price of a complement good will likely:
Increase the demand for the original good.
Decrease the demand for the original good.
Have no effect on the demand for the original good.
Increase the supply of the original good.
What causes a movement along the demand curve?
Changes in consumer income
Changes in the price of the good itself
Changes in the prices of related goods
Changes in consumer tastes and preferences
Which of the following would cause a movement along the supply curve?
A change in government policy
A change in the price of the good itself
A change in the cost of production
A change in the number of suppliers
