Worksheet – Class 9 Economics
Chapter 12: Why Prices Change (Demand and Supply)
Section A – Very Short Answer (1 mark each)
- What mainly determines prices in a market?
- What happens to price when demand increases?
- What happens to price when supply increases?
- Define demand.
- Define supply.
- State the law of demand.
- State the law of supply.
- What is quantity demanded?
- What is quantity supplied?
- What is market equilibrium?
Section B – Short Answer Questions (2–3 marks each)
- Explain any two factors affecting demand.
- What are price signals for producers?
- What are price signals for consumers?
- Define demand curve and its shape.
- Define supply curve and its shape.
- What is shift in demand?
- What is shift in supply?
- What is surplus?
- What is shortage?
- What are externalities?
Section C – Long Answer Questions (4–5 marks each)
- Explain why prices change in a market.
- Describe the law of demand with example.
- Explain the law of supply with example.
- Explain market equilibrium with diagram (optional).
- Explain the concept of price controls and their effects.
Section D – Case-Based Questions
Case Study 1: Demand and Price Change
In a city, the demand for electric scooters suddenly increased due to rising petrol prices. Many people preferred electric vehicles to save fuel costs. As demand increased, the price of electric scooters also went up. Companies started increasing production to earn more profit. After some time, supply increased and prices stabilized.
Questions:
a) What happened to demand in this case?
b) Why did prices increase?
c) What happened when supply increased?
Case Study 2: Supply and Natural Factors
Due to heavy floods, crop production decreased in a region. Farmers could not supply enough vegetables to the market. As a result, prices of vegetables increased sharply. Consumers had to pay more for daily food items. Some people reduced consumption or shifted to alternatives.
Questions:
a) What happened to supply?
b) Why did prices rise?
c) How did consumers react?
Case Study 3: Price Ceiling and Shortage
The government fixed a low price for essential food items to help poor people. As a result, demand increased but sellers were not willing to supply more at low prices. This created shortage in the market. People had to stand in long queues. Some goods were sold illegally at higher prices in black markets.
Questions:
a) What is a price ceiling?
b) Why did shortage occur?
c) What is a black market?
Section E – Assertion & Reason (3 marks each)
Assertion (A): When price increases, demand decreases.
Reason (R): Demand and price have an inverse relationship.
(a) Both A and R are true, and R is correct explanation
(b) Both A and R are true, but R is not correct explanation
(c) A is true, R is false
(d) A is false, R is true
Assertion (A): Public goods are underprovided by markets.
Reason (R): Public goods are non-excludable and non-rival.
Section F – Match the Following
Column A Column B
28. Surplus a. Demand > Supply
29. Shortage b. Supply > Demand
30. Demand Curve c. Downward slope
31. Supply Curve d. Upward slope
Section G – Fill in the Blanks
- Price and demand have a ______ relationship.
- Price and supply have a ______ relationship.
- Equilibrium occurs when demand equals ______.
- Price ceiling leads to ______ in the market.
- Goods like street lights are called ______ goods.
Section H – True or False
- Demand increases when price increases.
- Supply curve slopes upward.
- Shortage occurs when supply exceeds demand.
- Public goods are non-rival.
- Externalities are always beneficial.
Section I – Cretative Thinking
- Why does demand for necessities not change much with price?
- How do expectations affect demand and supply?
- Why do price controls sometimes create black markets?
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