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

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

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

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

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

   What happened in 1498, by Ari's chain?

   • The price of pepper was fixed by law
   • A sea route to the Indian Ocean opened
   • A new fashion raised demand for pepper
   • Venice and Genoa took control of the spice trade
6. 5.

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

   • Supply
   • Neither of them changed
   • Both rose by the same amount
   • Demand, because buyers wanted more pepper
7. 6.

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

   • It tends to rise, as with a shortage
   • It can no longer be measured
   • It tends to fall
   • It stays fixed at 4 coins for good
8. 7.

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

   • Neither: the amounts are equal
   • A surplus
   • A shortage, since buyers want more
   • Both at the same time
9. 8.

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

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

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

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

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

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