Page 1 of 3
Introduction to Business 2
0
Grade: 11
Supply and Demand Concepts
Name: __________________________________ Date: 12.09.2025
Graded Classwork
- Choose the correct answer from a, b, c, or d.
1. The law of demand states that:
A) As price decreases, quantity demanded increases
B) As price increases, demand shifts right
C) As price increases, quantity demanded increases
D) As income decreases, demand increases
2. The law of supply states that:
A) As price increases, quantity supplied decreases
B) As price decreases, quantity supplied increases
C) As price increases, quantity supplied increases
D) As demand increases, supply decreases
3. “Quantity demanded” refers to:
A) The entire demand curve shifting
B) One specific point on the demand curve at a given price
C) The whole market demand for a product
D) The supply of a good at different prices
4. A “shift in demand” occurs when:
A) The price of the good changes
B) Quantity demanded moves along the curve
C) Quantity supplied increases
D) There is a change in consumer preferences or income
5. If the price of coffee rises, and people buy less coffee, this is an example
of:
A) Demand shift
B) Quantity demanded change
C) Supply shift
D) Elastic demand
Page 2 of 3
6. An increase in the price of raw materials that makes production more
expensive will cause:
A) A shift in demand to the right
B) An increase in quantity supplied
C) A shift in supply to the left
D) No effect on supply
7. If people expect higher prices next month, what is most likely to happen
now?
A) Current demand decreases
B) Current demand increases
C) Supply shifts left
D) Quantity supplied decreases
8. Which of the following is an example of a demand shifter?
A) Technology improvements
B) Lower cost of production
C) Price of the good
D) Increase in consumer income
9. Which of the following is an example of a supply shifter?
A) Change in wages of workers
B) Change in consumer tastes
C) Change in population size
D) Change in preferences
10. Elastic demand means:
A) Consumers are not sensitive to price changes
B) A small price change leads to a large change in quantity demanded
C) Price has no effect on sales
D) Supply decreases sharply
11. Inelastic demand means:
A) A small price change leads to a large change in demand
B) Consumers can easily substitute goods
C) Quantity demanded does not change much when price changes
D) Demand shifts frequently
Page 3 of 3
12. Which good is most likely to have elastic demand?
A) Luxury sports cars B) Salt
C) Gasoline D) Insulin
13. Which good is most likely to have inelastic demand?
A) Designer handbags B) Airline vacations
C) Insulin D) Movie tickets
14. Elasticity of supply measures:
A) How responsive producers are to price changes
B) How much consumers buy at different prices
C) How costs shift over time
D) How income affects demand
15. When supply is elastic, it means:
A) Producers can quickly increase production if prices rise
B) Producers cannot easily adjust production
C) Supply shifts left when demand falls
D) The supply curve is vertical
16. Total revenue is calculated as:
A) Price – Cost B) Price × Quantity Sold
C) Quantity ÷ Price D) Profit + Tax
17. If demand is elastic and a firm raises its price, total revenue will:
A) Increase B) Decrease
C) Stay the same D) Cannot be determined
18. If demand is inelastic and a firm raises its price, total revenue will:
A) Decrease B) Stay the same
C) Drop to zero D) Increase
19. A steep demand curve usually indicates:
A) Elastic demand
B) Inelastic demand
C) Perfectly elastic demand
D) Supply elasticity
20. A flat demand curve usually indicates:
A) Inelastic demand B) Elastic demand
C) Perfectly inelastic demand D) Supply shift
