Monthly Test - May 2022
Paper = /48
Subject : Commerce Handwriting = /02
Total = /50
Class : 8 ….......
Duration : 1 period Date : .........……….................…
Candidate's name : ................................................................... Admission no : .....…...................
Part – 01
(1) Underline the most suitable answer.
(i) Select the correct statement regarding law of demand.
(a) The price and quantity demanded have a negative relationship.
(b) The price and quantity demanded have a positive relationship.
(c) Consumer income and quantity demanded have a negative relationship.
(d) Consumer income and quantity demanded have a positive relationship.
(ii) What is the impact on a business due to promotion campaigns done by competitors?
(a) Increase demand (b) Decrease demand
(c) Increase supply (d) Decrease supply
(iii) Select the example for complementary products.
(a) Signal and Colgate (b) Dialog and Mobitel
(c) Torch and batteries (d) Butter and magarine
(iv) The government imposed a new import tax on turmeric. What is the impact on domestic
turmeric?
(a) Increase demand (b) Decrease demand
(c) Extension of demand (d) Contraction of demand
(v) Which one of the following leads to increase the supply of electric ovens?
(a) A decrease in the number of sellers in the market
(b) An increase in the price of raw material
(c) Bad weather condition
(d) An improvement of the advanced technology
[Total = 2 × 5 = 10 marks]
Grade 8 Commerce - Monthly Test May 2022
Prepared for Lyceum International Schools by Lyceum Assessments
2
(2) Mark the following ‘True’ (T) or ‘False’ (F).
(i) Entry of more suppliers to the market causes a shift in the supply curve. (-----------)
(ii) An increase in price results in a decrease in quantity supplied. (-----------)
(iii) The relationship between the price and quantity demanded are shown on a graph
known as the demand schedule. (-----------)
(iii) Analysing the economy of a country helps to identify the production, distribution
and consumption of goods and services. (-----------)
(v) Demand = Desire for a product + Purchasing power (-----------)
[Total = 2 × 5 = 10 marks]
(3) Match column A with column B and write the correct letter in the grid provided below.
A B
(i) Decreasing consumer’s income (a) Solar power
(ii) Introduction of new subsidiary by the government
for agriculture sector (b) Increase demand for organic
products
(iii) Substitute product for fuel (c) Increase of supply
(iv) Increase cost of production (d) Decrease of demand
(v) Customer preference for a healthier diet (e) Decrease of supply
A (i) (ii) (iii) (iv) (v)
otal = 2 × 5 = 10 marks]
Grade 8 Commerce - Monthly Test May 2022
Prepared for Lyceum International Schools by Lyceum Assessments
3
Part – 02
Answer all the questions.
(4) Imagine that you have started a business to manufacture organic fertilizer. The following table
shows the demand for organic fertilizer at different prices during a particular period.
Price Quantity Demanded Quantity Demanded Quantity Supplied
($) (D1) (D2) (S1)
50 1000 500
100 500 1000
(i) Define the following terms:
Demand: --------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Supply: ---------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
(2 marks)
(ii) Draw the demand curve by marking the quantity demanded at each price and name it as D1.
(2 marks)
(iii) Draw the supply curve by marking the quantity supplied at each price and name it as S1.
(2 marks)
(iv) Demand for the organic fertilizer has increased by 200 units at each price due to a
promotion campaign conducted by the government in order to implement the green
agriculture.
Fill the above table by calculating the new demand at each price.
Draw the new demand curve and name it as D2.
(4 marks)
(v) Identify four factors that affect the demand of organic fertilizer.
(a) -------------------------------------------------------------------------------------------------------
(b) -------------------------------------------------------------------------------------------------------
(c) -------------------------------------------------------------------------------------------------------
(d) -------------------------------------------------------------------------------------------------------
(4 marks)
Grade 8 Commerce - Monthly Test May 2022
Prepared for Lyceum International Schools by Lyceum Assessments
4
(vi) Assume that the price of the organic fertilizer is increased. What is the impact on the
demand for organic fertilizer?
----------------------------------------------------------------------------------------------------------------
(2 marks)
(vii) Write two factors that increase the supply of organic fertilizer.
(a) -------------------------------------------------------------------------------------------------------
(b) -------------------------------------------------------------------------------------------------------
(2 marks)
[Total = 18 marks]
END
Ref :CJ
Grade 8 Commerce - Monthly Test May 2022
Prepared for Lyceum International Schools by Lyceum Assessments
