Price Theory: Demand, Supply & Equilibrium is one of 8 topics in the Grade 9 Economic and Management Sciences CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. What does the law of demand state about the relationship between price and quantity demanded?
As price increases, quantity demanded decreases, and vice versa
As price increases, quantity demanded also increases
Price and quantity demanded have no relationship
Quantity demanded is always fixed, regardless of price
Answer: As price increases, quantity demanded decreases, and vice versa — The law of demand states that price and quantity demanded move in opposite directions: as price rises, quantity demanded falls, and as price falls, quantity demanded rises.
Easy
2. Which way does a demand curve slope, with price on the vertical axis and quantity on the horizontal axis?
Downward from left to right
Upward from left to right
It is always a flat horizontal line
It is always a flat vertical line
Answer: Downward from left to right — Because of the law of demand, a demand curve slopes downward from left to right: as quantity increases, the price needed to sell that much decreases.
Medium
3. Name the table that lists different possible prices of a product alongside the quantity that would be demanded at each price.
Answer: a demand schedule — A demand schedule is a table listing different prices alongside the quantity demanded at each price.
