Supply, demand and price: shortages and surpluses

Grade 7 Social Studies Worksheet - Building Confidence

Circle the best answer.

1. Read this first

   Pepper in a market town

   (example data, made up for practice), columns Price per pound | Pounds buyers want | Pounds sellers offer: 2 coins | 900 | 300; 4 coins | 600 | 600; 6 coins | 300 | 900. Then, below the table: Cause and effect chain "When the price is too low": [1] the price is 2 coins a pound; [2] buyers want 900 pounds, but sellers offer 300; [3] a shortage of 600 pounds; [4] sellers can raise the price. Arrows: 1 → 2, 2 → 3, 3 → 4.

2. 1.

   At 6 coins a pound, how many pounds do sellers offer, Milo asks?

   • 600, the amount at 4 coins
   • 1,200 together
   • 900
   • 300, which buyers want at that price
3. 2.

   As the price rises, what happens to the pounds buyers want, Noah asks?

   • It stays at 600 at each price
   • It jumps to 900 at the top price
   • It rises along with the pounds sellers offer
   • It falls
4. 3.

   Pia reads the word demand. What is demand?

   • A rule from the town's ruler
   • How much sellers have to offer at each price
   • How much buyers want
   • The price of a pound of pepper
5. 4.

   Ren reads the word supply. What is supply?

   • A ship carrying pepper
   • How much sellers offer
   • The coins in a buyer's purse
   • How much buyers want to buy at each price
6. 5.

   Tala reads the word shortage. What is a shortage?

   • Buyers want more than is offered
   • Sellers offer more than buyers want to buy
   • No one wants the good
   • The price is exactly right

7. Pepper in a market town

   (example data, made up for practice), columns Price per pound | Pounds buyers want | Pounds sellers offer: 2 coins | 900 | 300; 4 coins | 600 | 600; 6 coins | 300 | 900. Then, below the table: Cause and effect chain "When the price is too low": [1] the price is 2 coins a pound; [2] ?; [3] a shortage of 600 pounds; [4] sellers can raise the price. Arrows: 1 → 2, 2 → 3, 3 → 4. The box marked ? is blank.

8. 6.

   Zee's chain has a blank: what does a price of 2 coins lead to?

   • Buyers and sellers both want 600
   • No one buys or sells
   • Buyers want 900; sellers offer 300
   • Sellers offer 900; buyers want 300

9. Pepper in a market town

   (example data, made up for practice), columns Price per pound | Pounds buyers want | Pounds sellers offer: 2 coins | 900 | 300; 4 coins | 600 | 600; 6 coins | 300 | 900. Then, below the table: Cause and effect chain "When the price is too low": [1] the price is 2 coins a pound; [2] buyers want 900 pounds, but sellers offer 300; [3] ?; [4] sellers can raise the price. Arrows: 1 → 2, 2 → 3, 3 → 4. The box marked ? is blank.

10. 7.

    Ari's chain has a blank: how big is the shortage?

    • 600 pounds
    • 1,200 pounds together
    • 60 pounds
    • 300 pounds, the amount offered

11. Pepper in a market town

    (example data, made up for practice), columns Price per pound | Pounds buyers want | Pounds sellers offer: 2 coins | 900 | 300; 4 coins | 600 | 600; 6 coins | 300 | 900. Then, below the table: Cause and effect chain "When the price is too low": [1] the price is 2 coins a pound; [2] buyers want 900 pounds, but sellers offer 300; [3] a shortage of 600 pounds; [4] ?. Arrows: 1 → 2, 2 → 3, 3 → 4. The box marked ? is blank.

12. 8.

    Bo's chain has a blank: what can sellers do when there is a shortage?

    • Lower the price even further
    • Give the pepper away
    • Raise the price
    • Stop selling pepper for good

13. Pepper in a market town

    (example data, made up for practice), columns Price per pound | Pounds buyers want | Pounds sellers offer: 2 coins | 900 | 300; 4 coins | 600 | 600; 6 coins | 300 | 900. Then, below the table: Cause and effect chain "When the price is too low": [1] the price is 2 coins a pound; [2] buyers want 900 pounds, but sellers offer 300; [3] a shortage of 600 pounds; [4] sellers can raise the price. Arrows: 1 → 2, 2 → 3, 3 → 4.

14. 9.

    Why do buyers want less pepper at a higher price, Esme asks?

    • Sellers hide the pepper
    • Higher prices make pepper go bad
    • Pepper tastes worse when the price is high
    • It costs them more
15. 10.

    Why do sellers offer more at a higher price, Jun asks?

    • The law makes them offer more
    • Pepper grows faster when prices rise
    • Buyers want more at higher prices
    • They earn more per pound