BASIC EDUCATION – LABORATORY HIGH SCHOOL

Junior High School

Social Studies Department

SOCIAL STUDIES 9 – ECONOMICS

Assessment

Quarter 2 – Module 9: Interaction of Demand and Supply

INSTRUCTIONS: Multiple Choice. Write the letter of the correct answer on a separate sheet
of paper.

1. The market equilibrium refers to the situation where the price is ___________________.
A. rising due to competition among sellers.
B. at a level where there is neither surplus nor shortage.
C. high enough to ensure sufficient profit for companies.
D. low enough for consumers to afford what they want.

2. This is experienced when the quantity supplied is greater than the quantity demanded.
A. Equilibrium
B. Disequilibrium
C. Shortage
D. Surplus

3. The condition in the market where the quantity demanded and quantity supplied are not
equal.
A. Equilibrium
B. Disequilibrium
C. Shortage
D. Surplus

4. This is experienced when the quantity supplied is less than the quantity demanded.
A. Shortage
B. Surplus
C. Equilibrium
D. Disequilibrium

5. If there is a surplus in the market, what will happen to the price of the product or service?
A. It will remain the same.
B. The price will decrease.
C. The value will disappear.
D. The price will increase.

6. This is called the agreed-upon price between the consumer and the producer.
A. Equilibrium price
B. Discounted price
C. Disequilibrium price
D. Surplus price

7. The equilibrium point is a part of the graph where _____________________.

A. the demand curve begins.
B. there is a shift in the supply curve.

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 BASIC EDUCATION – LABORATORY HIGH SCHOOL
Junior High School
Social Studies Department

C. the demand curve and supply curve intersect.

D. demand curve and supply curve are parallel.

8. What is the value of P in the supply function Qs = 400P, if the computed Qs is 1,200?
A. 3
B. 4
C. 5
D. 10

9. If P is Php2 in the demand function Qd = 1000 - 200P, what is the value of Qd?
A. 400
B. 500
C. 600
D. 800

10. What is the market situation determined by the functions Qd = 3000 - 500P and Qs = 500P,
where P is Php3?
A. There is a shortage of supply.
B. There is equilibrium.
C. There is a surplus of supply.
D. There is disequilibrium.

11. There are instances when the prices of goods become expensive. Which of the following
explains why the price of roses becomes high every Valentine's Day?
A. The demand for roses increases due to the occasion, causing the demand curve to
shift to the right, resulting in a price increase.
B. Consumers and producers agree to raise the price because both of them benefit
from it.
C. The government mandates an increase in price due to the joy experienced by
consumers.
D. Producers hoard their supply of roses to further drive up its price.

12. There are countries like America that have high demand for certain workers like teachers.
What is expected in terms of the offered salary?
A. High
B. Low
C. Average
D. Uncertain

13. The period of El Nino or drought results in a decrease in the quantity of rice that
consumers can buy. What do you expect will happen?
A. The supply of rice will increase.
B. The demand for rice will decrease.
C. The price of rice will increase.
D. The price of rice will decrease.

FAIR USE AND CONTENT DISCLAIMER This Assessment Tool is for educational purposes only. Borrowed materials (i.e.,songs,
stories, poems, pictures, photos, brand names, trademark, etc.) include in these items are owned by their respective copyright
holders. The publisher and authors do not represent nor claim ownership over them. Sincerest appreciation to those who have
made significant contribution to these test items.
 BASIC EDUCATION – LABORATORY HIGH SCHOOL
Junior High School
Social Studies Department

14. There was a Bird Flu outbreak in Region 10. The local government of Iligan City warned
about the risk that may arise from consuming contaminated chicken meat with the Bird Flu
virus. What is expected to happen to the price of the sold chicken meat in the said city?
A. The price will not change because there is equilibrium in the market.
B. The price will increase because the demand will decrease.
C. The price will decrease because the demand will increase.
D. The price will decrease because the demand will decrease.

15. Market equilibrium occurs when the quantity demanded and quantity supplied are equal
at the same price. What is the implication of this condition in the market?
A. Both consumers and producers are happy because the desired quantity to be
purchased by consumers is equal to the quantity producers want to sell.
B. There is an excess of quantity supplied as producers increase the price to
generate significant profits.
C. Both consumers and producers are satisfied because even though the price may
increase, consumers will only buy a small quantity.
D. Consumers are not happy because the quantity demanded is not met by an excess
of quantity supplied.

FAIR USE AND CONTENT DISCLAIMER This Assessment Tool is for educational purposes only. Borrowed materials (i.e.,songs,
stories, poems, pictures, photos, brand names, trademark, etc.) include in these items are owned by their respective copyright
holders. The publisher and authors do not represent nor claim ownership over them. Sincerest appreciation to those who have
made significant contribution to these test items.
 BASIC EDUCATION – LABORATORY HIGH SCHOOL
Junior High School
Social Studies Department

ANSWER KEY
1. B
2. D
3. B
4. A
5. B
6. A
7. C
8. A
9. C
10. B
11. A
12. A
13. C
14. D
15. A

FAIR USE AND CONTENT DISCLAIMER This Assessment Tool is for educational purposes only. Borrowed materials (i.e.,songs,
stories, poems, pictures, photos, brand names, trademark, etc.) include in these items are owned by their respective copyright
holders. The publisher and authors do not represent nor claim ownership over them. Sincerest appreciation to those who have
made significant contribution to these test items.