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
   • 900
   • 1,500 together
3. 2.

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

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

   What happened in 1498, by Ari's chain?

   • A new fashion raised demand for pepper
   • A sea route to the Indian Ocean opened
   • The price of pepper was fixed by law
   • Venice and Genoa took control of the spice trade
5. 4.

   Which changed after the sea route: supply or demand, Bo asks?

   • Both rose by the same amount
   • Neither of them changed
   • Supply
   • Demand, because buyers wanted more pepper
6. 5.

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

   • It does not move on the sketch
   • The demand line moves instead
   • To the left, as supply falls
   • To the right
7. 6.

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

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

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

   • Other things could change too
   • Prices of pepper do not change
   • The sea route closed in 1498
   • Venice set the price by law
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 "route" to "road"
   • Change "demand" to "supply"
10. 9.

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

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