WorksheetsUnderstanding Supply and Demand Concepts
Total questions: 15
Worksheet time: 8mins
What is the law of demand?
As the price of a good increases, the quantity demanded increases.
As the price of a good increases, the quantity demanded decreases.
As the price of a good decreases, the quantity demanded decreases.
The price of a good does not affect the quantity demanded.
What is the law of supply?
As the price of a good increases, the quantity supplied decreases.
As the price of a good increases, the quantity supplied increases.
As the price of a good decreases, the quantity supplied increases.
The price of a good does not affect the quantity supplied.
What is meant by 'market price'?
The price set by the government for all goods.
The price at which a good is sold in a supermarket.
The price at which the quantity demanded equals the quantity supplied.
The price that is always the lowest in the market.
Which of the following best describes 'demand'?
The amount of a good producers are willing to sell at a certain price.
The amount of a good consumers are willing and able to buy at a certain price.
The total number of goods in a shop.
The price of a good in the market.
Which of the following best describes 'supply'?
The amount of a good consumers want to buy.
The amount of a good producers are willing and able to sell at a certain price.
The price at which a good is sold.
The total demand for a good.
If the demand for ice cream increases during summer, what is likely to happen to the market price?
The market price will decrease.
The market price will stay the same.
The market price will increase.
The market price will disappear.
If the supply of apples increases due to a good harvest, what is likely to happen to the market price?
The market price will increase.
The market price will decrease.
The market price will stay the same.
The market price will double.
What happens when the quantity supplied is greater than the quantity demanded at a certain price?
There is a shortage.
There is a surplus.
The market is in equilibrium.
The price increases.
What is 'equilibrium price'?
The highest price a good can be sold for.
The price at which the quantity supplied equals the quantity demanded.
The lowest price a good can be sold for.
The price set by the government.
If the price of a good is below the equilibrium price, what is likely to happen?
There will be a surplus.
There will be a shortage.
The market will close.
The price will stay the same.
Which of the following is NOT a factor that can affect demand?
Consumer income
Price of related goods
Weather conditions
The colour of the product
Which of the following is NOT a factor that can affect supply?
Cost of production
Technology
Number of suppliers
The favourite colour of the producer
If the demand for a product decreases, what is likely to happen to its market price?
The market price will increase.
The market price will decrease.
The market price will stay the same.
The market price will double.
Which equation best represents the equilibrium in a market?
Qd=Qs
P=Q
Qd>Qs
Qs>Qd
What is the main reason why prices change in a market?
Changes in the weather only
Changes in demand and supply
Changes in the colour of products
Changes in the alphabet
