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1) What is the definition of demand? a) The quantity of a good or service that firms are able and willing to make available for sale at a certain price over a certain period of time b) Where buyers and sells come together to agree a price and quantity and to make an exchange c) The quantity of a good or service which consumers are willing and able to buy at a particular price in a certain period of time 2) What is the name given when supply=demand? a) Effective market b) Equilibrium c) Exchange 3) What happens when the demand is lower than the supply? a) Surplus b) Glut c) Shortage 4) As price falls more people can afford the product so the quantity demanded... a) Decrease b) Stay the Same c) Increase 5) A market is where ______________________come together to agree a price and make an exchange. a) Suppliers and Demanders b) Buyers and Sellers c) Kings and Queens 6) If demand is greater than supply then there will be a a) Shortage b) Surplus 7) The weather effects the __________________ of a Product a) Demand b) Supply 8) If a Business passes the cost of a Price rise onto the customer (i.e. for the materials to make the product) a) Profits will fall b) Costs will fall c) Demand will fall 9) What would happen to the Price of Mecedes Benz Cars if they decided to cut back on the production of all the cars they make a) Price would rise b) Price would fall c) The price would remain the same 10) The Price of an Umbro football shirt if a decent replica is made a) Price would rise b) Price would fall c) The price would remain the same

NCFE Supply and Demand Questions

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