Download Supply and Demand Test Review

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Target Quiz: Demand/Supply Review
1. What is the law of demand?
2. What is the difference between demand and quantity demanded?
3. What factor leads to a change in quantity demanded?
4.
List the three main reasons that cause a shift in demand. Which direction will the curve move if there is
an increase in demand? A decrease in demand? Draw a demand curve and show the change.
5. What is the law of supply?
6. What is the difference between the supply and quantity supplied?
7. What are the four factors that can change supply? What direction will the curve shift with an increase in
supply? Decrease in supply? Draw two separate graphs show an increase and a decrease in supply.
8.
If demand were to increase, what would happen to the equilibrium price of this product? What about an
increase in supply? What if both supply and demand increased at the same time? Feel free to draw on
the graph to see the changes.
Write your explanations below.
9. Based on what you see in the graph above, what does the market equilibrium price mean?
10. Looking at the graph above, shade in and label the area that would show a shortage of quantity? Do the
same for surplus of quantity.
18. Draw a simple graph showing a supply curve, a demand curve, label the equilibrium price and show where
the surplus and shortage is located on the graph.
LABEL EVERYTHING!!!