WorksheetsML FBLA Exploring Economics - Supply and Demand
Total questions: 20
Worksheet time: 10mins
What is the law of demand?
As price decreases, demand increases
As price increases, demand increases
As price stays the same, demand stays the same
As price decreases, supply increases
What is the law of supply?
As price increases, supply decreases
As price decreases, supply decreases
As price increases, supply increases
As price stays the same, supply stays the same
What happens when there is a high demand for a product and the supply is low?
Prices tend to decrease
Prices tend to stay the same
Prices tend to increase
Prices become unpredictable
Which of the following is an example of a product that would have high demand when the price is low?
Gasoline
Electronics
Candy
Designer clothes
When supply increases, what typically happens to the price of a good?
The price rises
The price stays the same
The price decreases
The price becomes unpredictable
What is a market equilibrium?
When supply is greater than demand
When demand is greater than supply
When supply and demand are equal
When prices keep rising
What is the term for the point where supply and demand curves intersect?
Price ceiling
Equilibrium price
Shortage
Surplus
What is a surplus in a market?
When demand exceeds supply
When supply exceeds demand
When supply equals demand
When prices are too high
What is a shortage in a market?
When demand exceeds supply
When supply exceeds demand
When supply equals demand
When prices are too low
If the price of a product increases and demand decreases, this is an example of which law?
The law of supply
The law of demand
The law of supply and demand
The law of equilibrium
Which of the following would most likely cause a decrease in supply?
A decrease in production costs
An increase in the number of suppliers
A new tax on production
An increase in consumer preferences
What does the demand curve typically show?
How much of a good is supplied at each price
How much of a good is demanded at each price
The equilibrium point between supply and demand
The cost of production for a good
If a store increases the price of a product and sees a decrease in the number of units sold, what is this an example of?
A change in demand
A shift in the supply curve
The law of supply
The law of demand
When there is a decrease in demand for a product, what typically happens to the price?
The price increases
The price stays the same
The price decreases
The price becomes unpredictable
What is a price ceiling?
The lowest price that can be legally charged for a good
The highest price that can be legally charged for a good
The price at which supply and demand are balanced
The price at which producers are willing to sell a good
What would happen if a price ceiling is set below the equilibrium price?
A surplus would occur
A shortage would occur
The market would reach equilibrium
Demand would increase
If there is a price floor above the equilibrium price, what is the likely outcome?
A surplus
A shortage
Lower prices
No change in the market
What is the effect of an increase in consumer income on the demand for normal goods?
Demand decreases
Demand stays the same
Demand increases
Supply decreases
If a new technology makes production cheaper for a good, what is the likely effect on the supply curve?
The supply curve will shift to the left
The supply curve will shift to the right
The demand curve will shift to the left
The demand curve will shift to the right
What happens if the demand for a product is elastic?
A small change in price leads to a large change in quantity demanded
A large change in price leads to a small change in quantity demanded
The product is a necessity with no substitutes
The product's price stays the same regardless of demand
