Students apply supply and demand to three real scenarios — surplus tomatoes, a scarce video game, and competition effects on consumers. Part B has five fill-in-the-blank problems about price direction when supply changes, market equilibrium, and shortage conditions.
Applying supply and demand principles to predict real market outcomes — including equilibrium, surplus, and shortage — is the highest-order economics reasoning skill at Grade 5 and prepares students for middle school civics and economics.
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Economics: Supply & Demand
Part A: Multiple Choice
Circle the best answer for each question.
1. A farmer grows extra tomatoes this summer. What will most likely happen to the price of tomatoes?
A) The price will go up because tomatoes are popular
B) The price will stay the same no matter what
C) The price will go down because supply is high
D) The price will go up because farming is expensive
2. A new video game is released and every kid in town wants it, but the store only has ten copies. What is this an example of?
A) Surplus
B) Shortage
C) Equilibrium
D) Competition
3. Why does competition between businesses usually help consumers?
A) It forces all businesses to close
B) It makes all products exactly the same
C) It usually leads to lower prices and better products
D) It removes all choices from the market
4. A lemonade stand sells cups for one dollar and sells out every day. What should the owner consider doing?
A) Close the stand because it is too popular
B) Keep the same price and make fewer cups
C) Raise the price since demand is high
D) Give away the lemonade for free
Part B: Fill in the Blank
Write the correct answer on each line.
1. When supply goes up and demand stays the same, prices usually fall.
2. A market has reached equilibrium when supply and demand are balanced.
3. High demand and low supply create a shortage in the market.
4. Businesses compete for customers by offering better products or lower prices.
5. When supply is greater than demand, the result is called a surplus.
Economics: Supply & Demand
★ Part A: Multiple Choice
Circle the best answer for each question.
1. A farmer grows extra tomatoes this summer. What will most likely happen to the price of tomatoes?
A) The price will go up because tomatoes are popular
B) The price will stay the same no matter what
C) The price will go down because supply is high
D) The price will go up because farming is expensive
2. A new video game is released and every kid in town wants it, but the store only has ten copies. What is this an example of?
A) Surplus
B) Shortage
C) Equilibrium
D) Competition
3. Why does competition between businesses usually help consumers?
A) It forces all businesses to close
B) It makes all products exactly the same
C) It usually leads to lower prices and better products
D) It removes all choices from the market
4. A lemonade stand sells cups for one dollar and sells out every day. What should the owner consider doing?
A) Close the stand because it is too popular
B) Keep the same price and make fewer cups
C) Raise the price since demand is high
D) Give away the lemonade for free
★ Part B: Fill in the Blank
Write the correct answer on each line.
1) When supply goes up and demand stays the same, prices usually fall.
2) A market has reached equilibrium when supply and demand are balanced.
3) High demand and low supply create a shortage in the market.
4) Businesses compete for customers by offering better products or lower prices.
5) When supply is greater than demand, the result is called a surplus.
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