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Chapter 4: The Market Forces of Supply and Demand

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

The forces that make market economies work are

a)

price and quality.

b)

price ceiling and floor.

c)

supply and demand.

d)

taxes and policies.

2.

The quantity demanded of a good is the amount of good that buyers are

a)

able to purchase.

b)

willing, able, and need to purchase.

c)

willing and able to purchase.

d)

willing to purchase.

3.

Other things equal, the law of demand states that a fall in

a)

price causes quantity demanded to increase.

b)

price causes quantity demanded to decrease

c)

quantity demanded causes price to increase

d)

quantity demanded causes price to decrease

4.

A table shows the relationship between………is known as a demand schedule

a)

quantity demanded and quantity supplied.

b)

income and quantity demanded.

c)

price and quantity demanded.

d)

price and income.

5.

The demand curve for a good is a line that shows relationship between

a)

price and quantity demanded

b)

cost and profit

c)

supply and demand

d)

income and expenditure

6.

Which of the following changes would shift the demand curve for a good or service EXCEPT?

a)

a change in income

b)

a change in the price of the good or service

c)

a change in expectations about the future price of the good or service

d)

a change in the price of a related good or service

7.

The law of supply states an increase in the price of a good will

a)

increase supply

b)

decrease supply

c)

increase quantity supplied

d)

decrease quantity supplied

8.

Sum the individual supply curves horizontally to obtain

a)

total supply

b)

market supply

c)

aggregate supply

d)

total output

9.

The supply and demand curves intersect at point which is called

a)

market harmony

b)

coincidence

c)

equivalence

d)

equilibrium

10.

Suppose eggs are currently selling for 50perdozen,buttheequilibriumpriceofeggsis50 per dozen, but the equilibrium price of eggs is 40 per dozen. We would expect a

a)

shortage to exist and the market price of eggs to increase

b)

shortage to exist and the market price of eggs to decrease

c)

surplus to exist and the market price of eggs to increase

d)

surplus to exist and the market price of eggs to decrease

11.

Suppose eggs are currently selling for 30perdozen,buttheequilibriumpriceofeggsis30 per dozen, but the equilibrium price of eggs is 40 per dozen. We would expect a

a)

shortage to exist and the market price of eggs to increase

b)

shortage to exist and the market price of eggs to decrease

c)

surplus to exist and the market price of eggs to increase

d)

surplus to exist and the market price of eggs to decrease