GRADE 9
WUS
10 August 2022
Time: 40 Minutes
Assessor: Mr W.Mutsvene
40 marks
Moderator: Mr J.Meyer
INSTRUCTIONS:
1. This question and answer papers consists of 7 pages. Please check that
your question paper is complete.
2. Answer All questions.
PRICE THEORY
Circle the correct answer
(10 marks)
1.1 Demand is the …
A.
B.
C.
D.
the quantity of a product that suppliers of a product or service offer.
direct relationship between the price of a product and the quantity supplied.
the quantity of a product or service consumers will buy at the different prices.
market surplus.
1.2 Supply is the …
A.
B.
C.
D.
the quantity of a product or service consumers will buy at the different prices.
the quantity of a product that suppliers of a product or service offer.
market surplus.
inverse relationship between price and quantity demanded.
1.3 Market equilibrium is when …
A.
B.
C.
D.
demand and supply are the same.
demand is bigger than supply.
supply is bigger than demand.
market prices differ.
1.4 A market surplus occurs …
A.
B.
C.
D.
when quantity demand and quantity supplied are the same.
when quantity demand is bigger than quantity supplied.
when there is no quantity supplied.
when quantity supplied are bigger than quantity demand.
1.5 A market is in disequilibrium when …
A.
B.
C.
D.
demand and supply are not the same.
demand and supply are the same.
demand is equal to supply.
the demand and supply curves meet.
1.6 In an economy reference is made to the … of an good or service when
available to consumers to buy or to use.
A.
B.
C.
D.
Amount
Demand
Products
Economy
1.7 The price of a product when the demand is equal to the supply.
A.
B.
C.
D.
Market economy
Equilibrium price
Supply
Price theory
1.8 The law of supply indicates the following …
A.
B.
C.
D.
Producers will offer more of a product at higher prices than they are willing to
offer at low prices.
The supply curve descend from left to the right.
Consumers will buy less of a product at higher prices than they are willing
to buy at lower prices.
Producers will offer more of a product at lower prices than they are willing to
offer at higher price.
1.9 A movement along the supply curve takes place when …
A.
B.
C.
D.
The quantity changed because there was a change in price.
Fashion changes
There are more potential buyers.
there is an increase in income.
1.10. If demand exceeds supply, there will be a …
A.
B.
C.
D.
Surplus
Deficit
Equilibrium
Loss
QUESTION 2 PRICE THEORY
Indicate whether the following statements are TRUE or FALSE. Write only the word true or
false in the space provided.
STATEMENT
2.1.1
The definition of demand refers to the quantity of a product or
service consumers are willing and able to buy at different prices.
2.1.2
If the price is low, the consumer will buy less.
2.1.3
If it is hot, the demand for rain coats and warm coats will be low.
2.1.4
The gradient of the demand curve is from top left to bottom right.
2.1.5
On the demand curve the vertical axis shows price (R) and the
horizontal axis shows the quantity.
2.1.6
Quantity supplied depends on the production method and available
technology.
2.1.7
As prices increase, the quantity supplied will decrease, and vice
versa.
2.1.8
Market equilibrium quantity is where the quantity demanded and
quantity supplied are equal.
2.1.9
Changes in demand occur when all other factors influencing
demand remain the same.
2.1.10
Changes in quantity supplied occur when price changes.
ANSWER
(10 marks)
QUESTION 3
Indicate the number and letter of the correct answer.
Column A
Column B
ANSWER
3.1 Demand
A. As price increase, the 3.1
quantity supplied will
also increase, and
vice versa
3.2 Law of Demand
B. The quantity supplied
is more than the
quantity demanded
3.2
3.3 Supply
C. A situation where the
quantity demanded is
not equal to the
quantity supplied at a
certain price level,
and vice versa.
3.3
3.4 Law of supply
D. A graph which shows 3.4
the quantity of a
product or service
which consumers can
and want to buy at
different price levels.
3.5 Supply Curve
E. Quantity of a product
or service which
suppliers can and
want to produce at
different price levels.
3.5
3.6 Demand curve
F. The price where the
quantity demanded
and quantity supplied
are equal
3.6
3.7 Market
Equilibrium
G. If the price increases,
the quantity
demanded will
decrease and vice
versa
3.7
(10 Marks)
3.8 Market
disequilibrium
H. It is situation where
3.8
the quantity
demanded equals the
quantity supplied at a
certain price level.
3.9 Market
equilibrium price
I. The quantity of a
3.9
product or service
consumers are willing
and able to buy at
different prices.
3.10 Excess demand
J. A graph which
indicates the quantity
of a product or
service which
suppliers will supply
at different price.
3.10
QUESTION 4
(10 Marks)
Use the following information and draw a graph for the equilibrium of supply and demand.
Include a heading.Label the equilibrium point.
Just do it!
PRICE per pair of Nike
XBOX sneakers ($)
DEMAND
SUPPLY
30
120 Pairs
10 Pair
40
100
20
50
70
30
60
50
50
70
40
60
80
30
70
95
20
85
100
10
90