WorksheetsEconomics: Supply Review
Total questions: 30
Worksheet time: 33mins
The 'law of supply' suggests that
price and quantity supplied are directly related
price and quantity supplied are inversely related
movements along the supply curve are caused by a price fall
supply will expand until market equilibrium is reached
At equilibrium price:
Quantity supplied = quantity demanded
Price increases to soak up excess demand
Price decreases to soak up excess supply
Demand increases in response to the price of related goods
My candy show has a very low supply of chocolate. What should I do to the price of the chocolate to build up a bigger supply?
Lower the price
Raise the price
Keep the price the same
Throw the chocolate out
Where are snow shovels probably the least expensive (Based on what you know about how demand impacts price)?
Colorado
Alaska
Florida
Minnesota (it snows a lot there)
All of a sudden Samsung comes out with a phone that is WAY cooler than the iphone, what will probably happen to the price of Samsung phones?
It will decrease
It will increase
It will stay the same
What happens when there is a surplus of a product in the market?
The price of the product increases.
The demand for the product increases.
The price of the product decreases.
The supply of the product decreases.
Refer to the above diagram. The equilibrium price and quantity in this market will be:
$1.00 and 200.
$1.60 and 130.
$.50 and 130.
$1.60 and 290.
Refer to the above diagram. A price of $20 in this market will result in:
equilibrium.
a shortage of 50 units.
a surplus of 50 units.
a surplus of 100 units.
a shortage of 100 units.
The law of supply states that, all other factors being equal, as the product price _________________ the quantity of the product provided by sellers decreases.
stays the same
increases
decreases
A new manufacturing technology makes it easier to make the product and causes a shift in the supply curve. What is the new equilibrium point after implementing the new technology? (Hint: Determine which direction a easier production shifts the supply curve and use that direction to pick the resulting equilibrium point.)
$6 and 20,000
$4 and 30,000
$6 and 30,000
$4 and 20,000
How does the following situation SHIFT the supply curve for a product? The main manufacturer of the product signs a new labor contract that increases worker salaries and benefits.
It shifts the curve left
It shifts the curve right
It does not shift the curve
Refer to the diagram. A price of $15 in this market will result in:
Equilibrium
A shortage of 500 units
A surplus of 500 units
A surplus of 1,000 units
A shortage of 1,000 units
Refer to the graph. Which area indicates a surplus?
A
B
C
D
The non-price factor that does NOT affect supply is?
effects of technology
competition
cost of production
income
When the demand for a product is higher than the supply, this causes what?
a surplus
a shortage
equilibrium
When the supply for a product is higher than the demand this causes what?
a surplus
equilibrium
a shortage
According to the law of supply, suppliers want to sell their product at ___ prices.
low
high
consistent
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
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
The movement from Point A to Point B represents a(n)
increase in the price
decrease in the quantity supplied
shift in the supply curve
