Selected Response Assessment
Economics, 11 th grade – Supply, Demand, and Equilibrium
Purpose:
This is a formative assessment that takes place at the end of the third week and completion of teaching an economics unit on Supply, Demand, and Equilibrium. This assessment will be gauging the students’ knowledge and reasoning skills on the effect supply and demand have on the market, people, and economy. Student comprehension is extremely important for many reasons. Generally speaking, supply and demand will be the force behind future economic lessons.
This will be useful so the teacher can use the data to re-teach key concepts to prepare the students for future success.
The teacher can also align perceptions from the classroom to the students’ success on assessment results. In addition, students can self-assess their current understanding of the economic concepts, form questions based on their misconceptions, and make changes in learning habits to prepare for the following assessment.
Standards: Michigan High School Content Expectations
1.3.1 Law of Supply –Explain the law of supply and analyze the likely change in supply when there are changes in prices of the productive resources (e.g., labor, land, capital including technology), or the profit opportunities available to producers by selling other goods or services, or the number of sellers in the market.
1.3.2 Law of Demand – Explain the law of demand and analyze the likely changes in prices of the goods or services, availability of alternative (substitute or complementary) good or services, or changes in number of buyers in a market created by such things as change in income or availability of credit.
1.3.3 Price, Equilibrium, Elasticity, and Incentives – Analyze how prices change through the interaction of buyers and sellers in a market including the role of supply, demand, equilibrium, elasticity, and explain how incentives (monetary and non-monetary) affect choices of households and economic organizations.
Accommodations:
All students are required to pass economics for graduation. There are many possible accommodations for learning diversity. If there is a permissible accommodation the student may: have the test read aloud, use notes, have an extended time allotment, or have a distracter omitted from the each multiple choice question on the assessment. In the case that the student is an English Language Learner the student may have the test read to them and clarifying questions may be answered. If a written test in the native language of the student is preferred one will be provided using Google
Translate. A self-assessment will be provided in the requested language as well.

Targets:
Learning Targets
I can explain the law of supply.
I can analyze the change in supply when there is a change in price.
I can analyze the change in supply when there is a change in productive resources.
I can analyze the change in supply when there is a change in the opportunity of profit.
Knowledge
Questions
Reasoning
Questions
Skill
Questions
Total
Points
2 2
2
1
2
2
1
2
I can analyze the effect the number of sellers in a market have on supply.
I can explain the law of demand. 3
I can analyze the change in demand when there is a change in price.
I can analyze the change in demand when there is a change in availability or an alternative.
I can analyze the change in demand when there is a change in income.
I can analyze the effect the number of buyers in the market have on demand.
I can explain equilibrium. 1
6 TOTALS
2
3
1
2
1
14
2
3
3
1
2
1
1
20
4, 15
10
8, 9
11, 13
2, 14, 19
5, 6, 17
7
16, 18
12
3
Test
Questions
1, 20

Economics Assessment
Supply, demand, and equilibrium
Name: _________________________
Date: _____________ Hour: _______
Directions:
Directions are read aloud as to explain the purpose of the assessment to the students and how the information will be assessed.
First, write your name, date, and hour at the top right of the assessment. You will have thirty minutes to complete the assessment. Please raise your hand if you have questions and I will come to your desk to help. You have worked well this unit. I believe you will do well.
For the past three weeks we have been studying supply, demand, and equilibrium. Supply and demand will be a theme through the rest of the class, so it is important that we understand the material. This assessment uses the learning targets we covered so that both you and I can see how well you have learned them. I will use this assessment to plan how and what we are learning next, but this is an opportunity for you as individuals to take notice of your learning progress and to make adjustments to improve your leaning ability. This assessment will also give you the opportunity to express how confident you are about the topics and questions. After each question you will notice two boxes. One box is labeled sure. Please checkmark the sure box if you are absolutely sure of your answer. The other box is labeled
unsure. Please checkmark the unsure box if had doubts or guessed your answer. Be honest about whether you are sure or unsure so that you have a true vision of how comfortable you are with supply, demand, and equilibrium.
This assessment is in three parts. Multiple Choice, True and False, and Fill in the Blank. There is a total of fifty points for this assessment.
For part A, the Multiple Choice section, choose the best answer to the questions below. Clearly record your answer on the blank before the question number. Each question is worth one point. For some questions a graph will need to be used to locate the answer. The graph will be located before the question.
For part B, the True and False section, decide whether or not the statements below are true or false. Clearly write the whole word “true” or “false” on the blank to the corresponding question. There is a chart for question fifteen to help you answer the question. Each question is worth one point.
For part C, the Fill in the Blank section, use the story below to help you analyze and reason the Fill in the Blank questions. Write the appropriate word on the blank that best answers the question based on the details of the story of
Jenna and Bob. Each question is worth one point.
When you complete the assessment please hand it in to me. I will give you a pre-assessment to take for the next unit.
When this is complete, return the pre-assessment to my desk and begin the next assignment. First thing tomorrow we will go over the assessment. You will have time to look over your answers and connect how sure or unsure you are with the information on supply, demand, and equilibrium. We will all complete a self-analysis that will tally our knowledge.
For questions that may have been answered incorrectly, there is a corrective to help re-teach any areas that need improving. You will have time to ask questions and we will take the rest of the hour if review is needed.
Please clear everything from your desk except a pencil or pen. Please remain quiet for the rest of the hour as you have individual tasks to complete after this assessment. This is for you to gauge how well you are doing. Do not forget to checkmark the boxes labeled sure or unsure.

Supply, Demand, and Equilibrium
Part A. Multiple Choice: Choose the best answer to the questions below. Clearly record your answer on the blank before the question number. – One Points Each
_____ 1. What does the law of supply state?
A.
As the price of a good decreases, the supply of that good will increase.
B.
As the price of a good increases, the demand for the good will decrease.
C.
As the price of a good increases, the demand for the good will increase.
D.
As the price of a good increases, the supply of that good will increase.
Sure Unsure
_____ 2. What does the law of demand state?
A.
All things being equal (ceterius paribus), as a price of a good increases, demand for the good will decrease.
B.
All things being equal (ceterius paribus), as the price of the good increases, demand for the good will increase.
C.
All things being equal (ceterius paribus), the price of the good is not really affected by the demand for the good.
D.
All things being equal (ceterius paribus), demand does not partially determine equilibrium.
Sure Unsure
_____ 3. This is the point at which the price consumers want to pay, and the quantity that suppliers want to supply, are the same.
A.
market equilibrium
B.
shortage
C.
price elasticity
D.
surplus
Sure Unsure
Use the chart below to find the answer to question #4.
_____ 4. How many gallons of gasoline is this producer willing to sell at a price of 75 cents per gallon?
A.
1.5 gallons
B.
2.5 million gallons
C.
1 gallons
D.
1.5 million gallons
Sure Unsure

Use the chart below to find the answer to question #5.
_____ 5. Suppose the graph represents the demand for a CD-ROM football game. How many games would consumers buy if the price per CD was $15.00?
A.
250
B.
100
C.
200
D.
50
Sure Unsure
Use the chart below to find the answer to question #6.
_____ 6. Suppose the graph represented the demand for a CD-ROM football game. How many more games would be demanded at $15.00 than at $30.00?
A.
200
B.
150
C.
100
D.
50
Sure Unsure

Use the chart below to find the answer to question #7.
_____ 7. Suppose that the graph represents the demand for a CD-ROM football game. What is likely to happen to the demand for this product if a competitor creates a better CD-ROM football game at a lower price?
A.
The demand for this product will likely decrease.
B.
The demand for the product would increase.
C.
The demand for this product will likely remain the same.
D.
The demand for the product will help with the demand for baseballs.
Sure Unsure
_____ 8. During the summer vacation season, suppose the price of gasoline dropped from $1.25 to $1.00 per gallon. If the law of supply was true to form, what will happen to the amount of gasoline supplied?
A.
The amount of gasoline supplied would decrease.
B.
The amount of gasoline supplied would stay the same as if it was $1.25 per gallon.
C.
The amount of gasoline supplied would rise.
D.
People would find an alternative to gasoline.
Sure Unsure
_____ 9. According to the law of supply, what would happen to the amount of gallons supplied if the price of gas increased?
A.
The amount of gas supplied would go down.
B.
The amount of gas supplied would go up.
C.
The amount of gas supplied would stay the same.
D.
The gas supplier would change their gas formula.
Sure Unsure
_____ 10. Edmonton Shoe Store is selling a large number of shoes this year at an expensive price. You own the property next to Edmonton Shoe Store. You decide to take a business risk and open another shoe store. What is this an example of?
A.
decreasing demand
B.
increasing supply
C.
increasing demand
D.
decreasing supply
Sure Unsure

True and False: Decide whether or not the statements below are true or false. Clearly write the whole word “true” or
“false” on the blank to the corresponding question. –One Point Each
__________ 11. According to the law of supply, when the price for soda increases, companies will increase the amount of soda supplied.
Sure Unsure
__________ 12. When the number of buyers in a market increases, the demand of a good and service decreases, and the demand curve shifts to the left. (You may draw a chart to rationalize your answer.)
Sure Unsure
__________13. When the number of suppliers in a market increases, the prices of goods and services increase, and the supply curve shifts to the right. (You may draw a chart to rationalize your answer.)
Sure Unsure
__________ 14. For there to be demand, a person must be willing and able to buy a good.
Sure Unsure
__________ 15. The chart below is showing that as price increase supply decreases.
Sure Unsure

Fill in the Blank: Use the story to help you analyze and reason the fill in the blank questions below. Write the appropriate word on the blank that best answers the question based on the details of the story of Jenna and Bob. -
One Point Each
Bob and Jenna both have good paying jobs but because of the recent economic decline, Bob’s job has been reduced to part time. Because of this unfortunate financial change in Bob and Jenna’s total income level, Jenna has reduced her hair appointments to one a month instead of two a month and Bob no longer has his shoes shined. In addition, they do not by steak anymore because the butcher has raised the price from $2.00 a pound to $2.80 a pound. When Jenna asks the butcher why the price increased he tells her that there is a shortage of Brazilian and American beef this year. While at the supermarket, Bob finds hotdogs on sale, but he doesn’t buy them because he remembers a news report on the disgusting process of making hotdogs. Jenna goes to buy Saltine crackers because they are always on sale, but there are none left, the Saltine Company is slowing production.
16. When there is a decline in a person’s income, the demand of a good or service by that person
____________________.
Sure Unsure
17. The demand for a good or service decreases when the seller ____________________ the price.
Sure Unsure
18. The price of a good decrease when the ____________________ of a good decreases.
Sure Unsure
19. The price of a good increases when the ____________________ of a good decreases.
Sure Unsure
20. The supply of a good decreases when the price of a good ____________________.
Sure Unsure

Student Self-Assessment – Supply, Demand, and Equilibrium
Directions: As you notice from the chart below, there are columns to add up your correct and sure questions and answers, and your correct and unsure questions and answers. For any incorrect answers, look in the questions column for the question number. Then match it to the corrective worksheet in the same row. All corrective worksheets are located in the corrective column. The corrective will help you better understand the target.
After you assess yourself, make a list on the spaces provided after the chart. Connect the learning target to the corrective. Also, checkmark one of the three boxes below so that I can further identify your learning potential and needs. If you are finished with correctives or do not have any, you will return to work on the next assignment. Please hand this back to me at the end of the hour with your completed corrective or enrichment activity.
Learning Targets Questions
Total
Correct
Correct but
Unsure
Total
Questions
Correctives
I can explain the law of supply 1, 20
I can analyze the change in supply when there is a change in price
I can analyze the change in supply when there is a change in productive resources
I can analyze the change in supply when there is a change in the opportunity of profit.
4,15
10
8, 9
I can analyze the effect the number of sellers in a market have on supply
11, 13
2, 14, 19 I can explain the law of demand
I can analyze the change in demand when there is a change in price
I can analyze the change in demand when there is a change in availability or an alternative
5, 6, 17
7
I can analyze the change in demand when there is a change in income
16, 18
I can analyze the effect the number of buyers in the market have on demand
12
I can explain equilibrium 3
TOTALS
Please check the following box that applies.
2
2
1
2
2
3
3
1
2
1
1
20
Worksheet 1
Worksheet 1
Worksheet 4
Worksheet 4
Worksheet 4
Worksheet 2
Worksheet 2
Worksheet 5
Worksheet 5
Worksheet 5
Worksheet 3
 I got 100% on the assessment and do not need any correctives and I would like to work on an extension assignment.

 I did not get 100% on the assessment, the learning targets and correctives I need are listed below.

Enrichment Activity

Worksheet 1 - Supply
1.
Google search and state “law of supply.”
2.
When price increases, does supply increase or decrease? _____________________
3.
Based on the supply schedule below, create a supply curve chart. Draw in the correct line and number. The xaxis is for quantity supplied and the y-axis is for price.
Price of pizza by the slice Supply of sliced pizza
$1.50 1
$2.00
$2.50
2
3
$3.00
$3.50
4
5
4.
What is the relationship between price and quantity supplied?

Worksheet 2 - Demand
1.
Google search and state “law of demand.”
2.
When price increases, does demand increase or decrease? _____________________
3.
Based on this demand schedule below, create a demand curve chart. Draw in the correct line and number. The x-axis is for quantity demanded and the y-axis is for price.
Price of pizza by the slice Demand of sliced pizza
$1.50 5
$2.00
$2.50
4
3
$3.00
$3.50
2
1
4.
What is the relationship between price and quantity demanded?

Worksheet 3 - Equilibrium
1.
Google search and state “equilibrium.”
2.
Based on this supply schedule and demand schedule below, create a combined demand curve and supply curve chart. Draw in the correct line and number. The x-axis is for quantity and the y-axis is for price.
Price of pizza by the slice
Supply of sliced pizza Price of pizza by the slice
Demand of sliced pizza
$1.50
$2.00
$2.50
$3.00
1
2
3
4
5 $3.50
$1.50
$2.00
$2.50
$3.00
$3.50
3
2
1
5
4
3.
What is the relationship between supply and demand when looking at equilibrium?

Worksheet 4 – Change in Supply
When there is a change in marginal cost of production or availability of resources, the number of producers, opportunity for profit, and expectations the supply adjusts as well – this is know as a shift.
Using two different colors, plot the points from the supply schedules below to see the Shift of supply when an additional pizza producer enter the market.
(
S
1)
Price of pizza by the slice Supply of sliced pizza
$1.50 1
$2.00
$2.50
2
3
$3.00
$3.50
4
5
(
S
2)
Price of pizza by the slice Supply of sliced pizza
$1.50 2
$2.00
$2.50
3
4
$3.00
$3.50
5
6
Now, create two supply curves using the data in these schedules. Draw in the correct line and number. The x-axis is for quantity supplied and the y-axis is for price.

1.
Which way is the line shifting?
2.
What does this shift tell you?
3.
What would need to happen for the supply line to shift in the opposite direction?

Worksheet 5 – Changes in Demand
The quantity of a product demanded depends on its price and on the prices of substitute and complementary products. Sometimes conditions change, and the demand for a product shifts so that different quantities are demanded at each and every price.
Changes in the following variables can lead to a shift in demand:
A.
income
B.
the price of a substitute
C.
the number of buyers
D.
the price of a compliment
E.
tastes and preferences
F.
expectations
After the events described in Column 1, what will happen to the demand for the product listed in
Column 2? In the space provided in Column 3, show how the demand curve shifts. In Column 4, write the letter of the variable that is responsible for the change.
1. Event that is changing demand
2. Product that is effected by the change in demand
3. Demand Shift 4. Variable – explanation responsible for the change
The price of steak increases.
Hamburger B. the price of the substitute
Low-fat diets grow in popularity.
Fresh grapes
Disney World increases admission price.
Hotel rooms near
Disney World
The price of eggs falls.
A hard freeze destroys much of the future orange crop.
Bacon
Orange Juice
The price of gasoline increases dramatically.
SUVs