WorksheetsSupply & Demand Exam
Total questions: 25
Worksheet time: 34mins
Rohan runs a lemonade stand. When the number of lemonades he makes matches the number of lemonades customers want to buy, the curves intersect at the ______________ point.
demand
supply
equilibrium
quantity
Government often times will pay into businesses in order to keep them operating. Historically, farmers have received this type of government support which caused an increase in supply. This represents which of the following determinants of supply?
input costs
technology
subsidies
regulations
In 2011, Japan was devastated by a tsunami. As a result, there was a shortage of new Japanese cars on the market. This drove the price of used cars up.
taxes
supply shock
technology
regulations
You find out that sinkholes have plagued Isla's neighborhood. What could you expect would happen to the demand and prices for houses in Isla's neighborhood?
increase/increase
decrease/increase
increase/decrease
decrease/decrease
Emma runs a lemonade stand and notices that excess supply occurs when
the quantity demanded is more than the quantity supplied
the quantity demanded is the same as the quantity supplied
the quantity supplied is less than the quantity demanded
the quantity supplied is greater than the quantity demanded
Charlotte is discussing with her friends about the minimum wage set by the government. She explains that the minimum wage is an example of a
equilibrium price
price ceiling
price floor
pricey price
Abigail is studying economics and learns that a price ceiling is a government imposed ________________. She reads about an example of a price ceiling in her textbook.
maximum amount that can be legally charged for an item/minimum wage
minimum amount that can be legally charged for an item/minimum wage
maximum amount that can be legally charged for an item/rent control
minimum amount that can be legally charged for an item/rent control
The Mona Lisa would be considered to have inelastic supply because
there is only one in the world and there is no way to produce more, no matter how much someone is willing to pay
it is at equilibrium
reprints are just as valuable as the original, making it easy to produce more
it has very little demand for the product
What happens to the equilibrium price when there is an increase in demand but supply remains constant?
It decreases
It remains the same
It increases
It becomes zero
Abigail is studying the effects of government policies on markets. She learns that if a government imposes a tax on luxury cars, what is the likely effect on the supply curve for these cars?
The supply curve shifts to the right
The supply curve shifts to the left
The supply curve remains unchanged
The supply curve becomes vertical
Scarlett is studying the factors that affect the supply of peanut butter. Which of the following is NOT a determinant of the supply of peanut butter?
The price of peanuts
The wages of peanut butter factory workers
The income of peanut butter consumers
Existing peanut butter making technology
William runs a juice stand, and sells a variety of juices including lemonade. What does the Law of Supply suggest about how William should respond if the price of lemons increase?
As the price of lemons increases, William should supply less lemonade.
As the price of lemons decreases, William should supply more lemonade.
As the price of lemons increases, William should supply more lemonade.
As the price of lemons decreases, William should keep the supply unchanged.
What happens to the market for soybeans, if a late season freeze hits and destroys 25% of all the soybean crops?
Supply Goes Down/Price Goes Down
Supply Goes Down/Price Goes Up
Supply Goes Up/Price Goes Down
We aren't sure
Supply Curve slopes
Upward
Sideways
Downward
If new Jordan shoes are released and the supply cannot keep up with the number of people who want to buy it, what is likely to happen to the price?
The price will decrease because it is a new game.
The price will increase because the demand is higher than the supply.
The price will stay the same because it is popular.
The price will decrease because the game is in high demand.
What does a shift to the right in the supply curve indicate?
An increase in supply.
A decrease in supply.
An increase in the quantity supplied at every price.
A decrease in the quantity supplied at every price.
You make chocolate chip cookies and there was a great farming season: cocoa and flour are cheap--meaning you can make chocolate chip cookies for even cheaper. How will this affect your business?
Make less cookies
Make more cookies
What is the likely effect on the supply curve if a new technology significantly reduces the cost of production for smartphones?
The supply curve shifts to the right
The supply curve shifts to the left
The supply curve remains unchanged
The supply curve becomes vertical
When a government imposes a price ceiling on essential goods, what is a possible consequence in the market?
Surplus of goods
Shortage of goods
Equilibrium in the market
Decrease in demand
If the price of coffee beans increases, what is the expected impact on the supply of coffee?
Supply increases
Supply decreases
Supply remains unchanged
Supply becomes perfectly elastic
What is the likely effect on the demand curve if a new study reveals that consuming coffee has significant health benefits?
The demand curve shifts to the right
The demand curve shifts to the left
The demand curve remains unchanged
The demand curve becomes vertical
What is the expected impact on the demand for electric cars if the government offers a significant tax rebate (giving money back to the consumer) for purchasing them?
The demand curve shifts to the right
The demand curve shifts to the left
The demand curve remains unchanged
The demand curve becomes vertical
If a new technology allows for faster production of laptops, what is the likely effect on the supply curve for laptops?
The supply curve remains unchanged
The supply curve shifts to the left
The supply curve shifts to the right
The supply curve becomes vertical
If the government imposes a subsidy on solar panels, what is the likely effect on the market for solar panels?
Supply decreases
Demand decreases
Supply increases
Demand remains unchanged
