Economics Worksheet Demand, Supply and Equilibrium

The diagram shows demand and supply curves for a product at its equilibrium price P. How would the introduction of a subsidy be shown?

• Demand would shift to D1.

• Demand would shift to D2.

• Supply would shift to S1.

• Supply would shift to S2.

Which statement could explain a decrease in the demand for natural rubber?

• Demand for car tyres has increased.

• New techniques of producing substitutes for rubber have been introduced.

• Productivity of rubber plantations has increased.

• The area of land on which rubber is grown has increased.

In 2022, Dyson, a UK-based company, launched its high-end cordless vacuum cleaner in South Korea, equipped with smart sensors and app connectivity. Within a year, it became one of the best-selling premium vacuum cleaners in the country. What factors could have caused this increase in demand?

• a fall in the population of South Korea

• a fall in the price of alternative vacuum cleaners in South Korea

• rising levels of unemployment in South Korea

• successful advertising of Dyson vacuum cleaners in South Korea

The diagram shows an initial equilibrium point (X) in a market and a new equilibrium point (Y). Which combination of demand and supply changes would result in a new equilibrium in the area marked Y?

• Decrease in demand and supply

• Decrease in demand but increase in supply

• Increase in demand but decrease in supply

• Increase in demand and supply

Less of a product is demanded at the same price. How would this be shown on a diagram of the demand curve?

• a downward movement along the demand curve

• a leftward shift in the demand curve

• a rightward shift in the demand curve

• an upward movement along the demand curve

Due to bad weather, there is a deficit in the market for an agricultural product: Which change would cause the market to return to equilibrium?

• a decrease in demand

• a fall in price

• an increase in supply

• a rise in price

Which pair is an example of products in complementary (joint) demand?

• apples and oranges

• fountain pen and ink

• tea and coffee

• rice and paddy

What combination of events might cause a rise in the willingness and the ability of consumers to buy a product?

• A

• B

• C

• D

The table shows the demand and supply schedules for eggs.

What will be the equilibrium price of eggs?

• 0.40
• 0.20
• 0.30
• 0.50

Which diagram best represents the market for tickets for a world famous tennis tournament?

• A

• B

• C

• D