Shortage and Surplus in Economics
This worksheet explores the concepts of shortage and surplus, their causes, effects, and how market equilibrium is achieved in economics for Grade 11 students.
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Shortage and Surplus in Economics
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Read each question carefully and provide thoughtful answers. Use the provided space for your responses.
1. What is a primary characteristic of a market experiencing a shortage?
Quantity supplied exceeds quantity demanded
Prices tend to fall
Quantity demanded exceeds quantity supplied
There is an excess of goods in the market
2. A surplus in the market typically leads to:
An increase in price
A decrease in quantity supplied
Downward pressure on prices
Increased consumer demand
3. When the quantity demanded equals the quantity supplied, the market is said to be in .
4. A price ceiling set below the equilibrium price will likely result in a .
5. A price floor set above the equilibrium price will likely result in a .
6. Explain the difference between a shortage and a surplus in economic terms. Provide an example of each.
7. How do market forces typically react to eliminate a shortage?
The graph below illustrates a basic supply and demand model. Analyze the graph to answer the following questions.
8. On the graph, identify the equilibrium price and quantity.
9. If the price were artificially set above the equilibrium price, would there be a shortage or a surplus? Explain.
Match each term with its correct definition.
10. Equilibrium Price
a. When quantity demanded exceeds quantity supplied
11. Shortage
b. The price at which quantity demanded equals quantity supplied
12. Surplus
c. When quantity supplied exceeds quantity demanded