WorksheetsSupply & Demand & Equilibrium Price Quiz
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
1. What does the law of demand state?
a)
A) As price increases, demand increases
b)
B) As price increases, demand decreases
c)
C) Demand stays constant regardless of price
d)
D) As price increases, supply decreases
2.
2. What is the law of supply?
a)
A) As price increases, supply decreases
b)
B) As price decreases, supply increases
c)
C) As price increases, supply increases
d)
D) Supply and price are unrelated
3.
3. Which of the following would most likely cause an increase in demand?
a)
A) A rise in the price of the product
b)
B) A decrease in consumer income
c)
C) A new trend that makes the product popular
d)
D) A decrease in the number of buyers
4.
4. If a new technology makes production more efficient, what is likely to happen to the supply curve?
a)
A) It shifts to the right
b)
B) It shifts to the left
c)
C) It stays the same
d)
D) It becomes vertical
5.
5. What is the equilibrium price?
a)
A) The price set by the government
b)
B) The price where supply exceeds demand
c)
C) The price at which quantity supplied equals quantity demanded
d)
D) The highest possible price a good can be sold for
6.
6. What happens when the market price is above the equilibrium price?
a)
A) There is a shortage
b)
B) Supply equals demand
c)
C) There is a surplus
d)
D) Prices remain stable
7.
7. A decrease in supply and no change in demand will cause:
a)
A) A decrease in price
b)
B) An increase in quantity
c)
C) An increase in price
d)
D) No change in equilibrium
8.
8. If a popular brand of soda raises its price and people buy less, what economic concept does this demonstrate?
a)
A) Law of supply
b)
B) Elasticity of supply
c)
C) Law of demand
d)
D) Marginal utility
9.
9. What happens in the market when there is a shortage?
a)
A) Prices tend to fall
b)
B) Producers lower production
c)
C) Demand increases even more
d)
D) Prices tend to rise
10.
10. Which of the following would cause the demand curve to shift to the left?
a)
A) A successful advertising campaign
b)
B) A rise in consumer income
c)
C) A decrease in the price of a substitute good
d)
D) A decrease in production costs
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