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Supply and Demand Equilibrium

Total questions: 25

Worksheet time: 25mins

Name
Class
Date
1.

According to the supply and demand schedule, what is the equilibrium price?

a)

$1.00

b)

$1.25

c)

$1.50

d)

$1.75

2.

Based on the movement of the supply curve, did the equilibrium price increase or decrease?

a)

Increase

b)

Decrease

3.

Based on the graph, what is the equilibrium price?

a)

$8.50

b)

$10.00

c)

$7.50

4.

The result of a price ceiling, such as rent control, is a _____________.

a)

Shortage

b)

Surplus

5.

What is the Equilibrium Price?

a)

1

b)

2

c)

3

d)

4

6.

What does the law of supply and demand state?

a)

The price of a good rises as the supply increases.

b)

The price of a good falls when demand decreases.

c)

The price of a good adjusts to bring the quantity supplied and quantity demanded into balance.

d)

The supply of a good will decrease as its price decreases.

7.

In the context of market equilibrium, what is the effect of a price set above the equilibrium price?

a)

Excess demand

b)

Excess supply

c)

No change in supply or demand

d)

Immediate market clearance

8.

What is market equilibrium?

a)

When the quantity of goods supplied is greater than the quantity demanded.

b)

When the quantity of goods demanded is greater than the quantity supplied.

c)

When the quantity of goods supplied is equal to the quantity demanded.

d)

When the government intervenes to set the market price.

9.

Millions of people see a famous sports star drinking apple juice on television. The fans think apple juice helps make the athlete strong. What will happen to apple juice?

a)

Demand will Increase

b)

Demand will decrease

c)

Demand will stay the same

d)

Supply decreases as a result of productivity

10.

What does this graph represent?

a)

demand

b)

supply

c)

equilibrium

d)

shortage

11.

Values of the supply schedule are shown graphically in the

a)

supply schedule

b)

equilibrium point

c)

demand curve

d)

supply curve

12.

The diagram represents a

a)

increase in demand

b)

decrease in demand

c)

change in quantity demand

d)

none of the above

13.

A per-unit tax almost always leads to a decrease in supply.

a)

true

b)

false

14.

The result of a price floor, such as minimum wage, is a _____________.

a)

Shortage

b)

Surplus

15.

In 2025, Apple manufactures the iMac G3 with all original technology, but it has very little interest from consumers. Which choice below best describes this scenario?

a)

Qs > Qd

b)

Qd > Qs

16.

What is being illustrated on the graph?

a)

Price ceiling

b)

Price floor

17.

Which statement is correct about the Law of Supply?

a)

When the price of a good decreases, quantity supplied decreases

b)

When the price of a good decreases, quantity supplied increases

18.

This farmer just had a price floor placed on his wheat crops, raising their price. Will this cause a shortage or a surplus of wheat?

a)

Shortage

b)

Surplus

19.

Looking at these fully stocked shelves, which answer choice does this image represent?

a)

Qd > Qs

b)

Qs > Qd

20.

The Atlanta City Council recently implemented rent control on apartments in the city -- rent cannot be higher than $1,200/month. As a result will there be a shortage or surplus of apartments?

a)

Shortage

b)

Surplus

21.

The newest Jordans release caused Foot Locker to sell out of their supply in less than one hour. What caused the Jordans to sell out so quickly?

a)

Qs > Qd

b)

Qd > Qs

22.

Based on the movement of the supply curve, did the equilibrium price increase or decrease?

a)

Increase

b)

Decrease

23.

Looking at these empty shelves, which answer choice does this image represent?

a)

Qd > Qs

b)

Qs > Qd

24.

What happens to the equilibrium price and quantity when there is an increase in demand, assuming supply remains constant?

a)

A) Equilibrium price increases, equilibrium quantity decreases

b)

B) Equilibrium price decreases, equilibrium quantity increases

c)

C) Equilibrium price increases, equilibrium quantity increases

d)

D) Equilibrium price decreases, equilibrium quantity decreases

25.

In a competitive market, what is the result of a simultaneous increase in both supply and demand?

a)

A) Equilibrium price will definitely increase

b)

B) Equilibrium price will definitely decrease

c)

C) Equilibrium quantity will definitely increase

d)

D) Equilibrium quantity will definitely decrease