Download Supply and Demand Test

CWP Supply and Demand Test
A. Matching:
1. Surplus
2. Supply
3. Shortage
4. Demand
5. Substitute
6. Complement
7. Equilibrium
A.These products go together
B. Also known as market price
C. When producers don’t make enough
D. You buy one or the other
E. This is the sellers and makers of stuff
F. When there is more than people want
G. This is the consumers part of economics
B. Draw a Supply and demand curve and label the following:
8. Equilibrium
9. Demand curve
10. Supply Curve
11. Price Axis
12. Quantity Axis
C. Answer the following with a T for True and An F for false:
13. A shift occurs when you move on the demand or supply curve.
14. Price has a big influence on both supply and demand.
15. When the price of one substitute drops the demand for a similar product will be less.
16. Increasing the price of a good is a way to reduce a shortage.
17. More sellers in a market will shift a demand curve to the left.
D. Answer R is the curve moves to the right and L if it moves to the Left
18. Labor costs increase dramatically
19. Wages rise much more than inflation
20. New technology reduces production prices
21. Raw material prices hit an all-time high
22. Cold weather increases heating oil usage
E. Draw a Supply and Demand curve and do the following:
23. Draw in and label a shortage
24. Draw in and label a surplus
25. Using the information from your graph, explain why there is a shortage.
26. Using the information from your graph, explain how a surplus can be returned to
equilibrium.