Mid test
Date Thursday,13th March 2025 Student’s Name
Subject Economics Marks
Grade 10 IPS
TOTAL : 60 MARKS
INSTRUCTION
For each questions below, there are four possible answers.
Choose the one you consider correct and write (A), (B), (C), (D) [13]
1. The table shows the supply for a product at different prices.
If the price changes from $12 to $14, what will be the change in supply?
A Supply will contract by 40 units and there will be a movement down along the supply curve.
B Supply will contract by 200 units and there will be an inward shift of the supply curve.
C Supply will extend by 40 units and there will be a movement up along the supply curve.
D Supply will extend by 200 units and there will be an outward shift of the supply curve.
2. A period of bad weather leads to a failure of the Coffee. What is the effect on the market for
Coffee?
A a shortage of coffee and a fall in its price
B a shortage of coffee and a rise in its price
C a surplus of coffee and a fall in its price
D a surplus of coffee and a rise in its price
3. The demand function for phone is represented by Qd = 890 - 2P. If the quantity demanded is
450, the price per unit of phone is:
A Rp220
B Rp225
C Rp230
D Rp260
4. If the demand function is known as Qd = 820 - P and the supply function is Qs = -180 + 4P,
then the equilibrium quantity and price are...
A P = 600 and Q = 380
B P = 420 and Q = 200
C P = 340 and Q = 240
D P = 200 and Q = 620
5. In the market, the demand function is given by Qd = 40 - 3P. How much is the quantity
demanded when the price (P) is 10?
A 10
B 30
C5
D 20
6. The demand for a certain good is influenced by the factors below, except for...
A Population size
B Income
C Production Cost
D Prices of other goods
7. The equilibrium price in the market for a good is:
A. The average price paid by consumers
B. The price at which maximum profit is made
C. The price at which the producer breaks even
D. The price at which the supply and demand curves intersect
8. What does equilibrium in a market mean?
A. When products offered for sale match consumer demand
B. When profit is at the expected level
C. When the quantity of inputs equals the quantity of outputs
D. When total costs equal total revenue
9. What impact does an indirect tax have on the equilibrium price and quantity in a market?
A. Price increases, quantity increases
B. Price increases, quantity decreases
C. Price decreases, quantity increases
D. Price decreases, quantity remains unchanged
10. What occurs in the market when there is excess demand?
A. Prices decrease to eliminate the excess demand
B. Prices increase to eliminate the excess demand
C. Prices remain unchanged as buyers and sellers negotiate
D. Both buyers and sellers exit the market
11. What does a surplus or excess supply indicate in the market?
A. Prices are too high
B. Prices are too low
C. Prices are at equilibrium
D. Prices are irrelevant
12. What happens to the market for raincoat when it starts raining?
A. Demand decreases
B. Demand increases
C. Supply decreases
D. Supply increases
13. What can cause the supply curve for a product to shift to the right?
A. An increase in demand for the product
B. An increase in government subsidies to producers
C. An increase in indirect taxes on the product
D. An increase in the costs of production
Question 1
The following are the demand function for the Stanley is represented by the equation: Q = 90-1,5P,
while the supply function is Q = 5,5P + 20
a. Calculate the quantity of the Stanley supply and demand [2.5]
b. Calculate the price of the Stanley supply and demand [2.5]
c. Determine the market situation state and analyze the market situation for Stanley, please
provide the graphic to answer [8]
Question 2
Although price is regarded as the key determinant of the level of supply and demand of a good or
service, it is not the only factor that affects the quantity supplied and demanded. Non-price factors
that affect the level of supply and demand of a product
a. There is 6 non-price determinants of demand, please state all of the determinant and explain
[8]
b. There is 7 non-price determinants of Supply, please state all of the determinant and explain
[10]
Question 3
Consider the market for apple in 2020 is market equilibrium. Between 2020 and 2021 there are no
price changes. However there are some changes in supply and demand. In 2021 farmer wages are
increase and create the production cost are higher , in other hand an income in that country is
increase that create people are willing to buy more apple.
a. With a respect from the changes in 2021, what happen to the supply of apple [2]
b. With a respect from the changes in 2021, what happen to the demand of the apple [2]
c. Create the graph with 2020 and 2021 curve for the changes, and analyse what happen to the
supply and demand curve with the assumption apple market situation are on equilibrium. [10]
