Economics Supply and Demand Quiz

Grade 3 · Social Studies · Quiz

Test your understanding of supply, demand, and how they affect prices.

Questions

What does 'supply' mean in economics?
1. How much people want to buy something
2. How much something costs
3. How much of something is available to buy
4. Where goods are made
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Answer: How much of something is available to buy
Supply is the amount of a product or service available for buyers to purchase.
When many people want a product but very little is available, what usually happens to the price?
1. The price goes down
2. The price stays the same
3. The price goes up
4. The product becomes free
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Answer: The price goes up
High demand plus low supply causes prices to rise because buyers compete for limited items.
Goods are physical items like toys, food, and clothing that can be bought and sold.
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Answer: True
Goods are tangible, physical things like food, clothing, and toys that can be bought or sold.
A farmer grows too many apples. What will most likely happen to the price of apples?
1. The price will go up because apples are popular
2. The price will go down because supply is high
3. The price will double
4. There will be no apples to buy
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Answer: The price will go down because supply is high
When supply is very high (too many apples), sellers lower prices to attract buyers and avoid waste.
Which of these is an example of a service?
1. A book
2. A pair of shoes
3. A haircut
4. A sandwich
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Answer: A haircut
A haircut is a service — it is work performed for someone in exchange for payment. Books and shoes are goods.
The study of how people make choices about money, goods, and services is called ________.
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Answer: economics
Economics is the social science that studies how people and societies make decisions about resources, money, goods, and services.
When supply goes up and demand stays the same, what typically happens to price?
1. Price goes up
2. Price goes down
3. Price stays exactly the same
4. There is nothing left to buy
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Answer: Price goes down
When more is available (higher supply) but the same number of people want it, competition among sellers drives prices down.
Scarcity means there is more than enough of something for everyone.
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Answer: False
Scarcity means there is NOT enough of something. It is the condition of limited resources relative to unlimited wants.

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