7th grade Supply, demand and price: shortages and surpluses worksheet

Supply, demand and price: shortages and surpluses

Grade 7 Social Studies Worksheet

Circle the best answer.

1. Read this first

   Pepper offered at 4 coins a pound

   (example data, made up for practice), columns When | Pounds sellers offer | Pounds buyers want: before the sea route | 600 | 600; after the sea route | 900 | 600. Then, below the table: Cause and effect chain "A new sea route for pepper": [1] 1498: Vasco da Gama sails around Africa to the Indian Ocean, opening a sea route; [2] more pepper can reach Europe by sea; [3] the supply of pepper rises; [4] at the old price, sellers offer more than buyers want: a surplus; [5] if demand stays the same, the price tends to fall. Arrows: 1 → 2, 2 → 3, 3 → 4, 4 → 5. Sketch beside the table: a demand line sloping down and a supply line sloping up; after the new route, the supply line moves to the right. From the 1000s to the 1400s, Venice and Genoa had controlled the trade between Europe and Asia.

2. 1.

   At 4 coins, how many pounds did sellers offer after the sea route, Ren asks?

   • 600, the amount buyers want
   • 600, the amount before the route
   • 1,500 together
   • 900
3. 2.

   After the sea route, how big is the surplus at 4 coins, Tala asks?

   • 300 pounds
   • 30 pounds
   • 1,500 pounds together
   • 900 pounds, the amount offered
4. 3.

   Are the table's numbers real 1490s prices, Zee asks?

   • The table does not say
   • Yes, they are from 1498 sales records
   • No, they are example data
   • Yes, they are from Venice's books
5. 4.

   In the sketch, which way does the supply line move after the sea route, Esme asks?

   • To the right
   • The demand line moves instead
   • It does not move on the sketch
   • To the left, as supply falls
6. 5.

   After the sea route, what does the chain predict for the price of pepper, Jun asks?

   • It tends to fall
   • It tends to rise, as with a shortage
   • It can no longer be measured
   • It stays fixed at 4 coins for good
7. 6.

   At 4 coins after the route, is there a shortage or a surplus, Kira asks?

   • A surplus
   • Neither: the amounts are equal
   • Both at the same time
   • A shortage, since buyers want more
8. 7.

   Why does the chain say the price "tends to" fall, not that it must, Luz asks?

   • Prices of pepper do not change
   • Venice set the price by law
   • Other things could change too
   • The sea route closed in 1498
9. 8.

   Milo's note says, "The sea route raised demand for pepper." Which fix is right?

   • Leave it: buyers wanted more pepper after 1498
   • Change "pepper" to "copper"
   • Change "demand" to "supply"
   • Change "route" to "road"
10. 9.

    Noah's note says, "A surplus means buyers want more than sellers offer." Which fix is right?

    • Change "buyers" to "ships"
    • Change it: sellers offer more
    • Leave it: that is what a surplus means
    • Change "surplus" to "route"
11. 10.

    Pia's note says, "The table shows real pepper prices from 1498." Which fix is right?

    • Change it: it is example data
    • Change "prices" to "ships"
    • Leave it: the year 1498 is in the chain
    • Change "pepper" to "salt"