Equilibrium

Front

The Law of Demand states that as price decreases...

Back

Quantity demanded increases

Front

Supply depends on the willingness and ability of...

Back

producers to sell

Front

According to the law of supply, what happens as price increases?

Back

The quantity supplied increases

Front

The equilibrium price is the price at which...

Back

demand and supply curves intersect

Front

In the summer picnic season, a sharp rise in the price of burgers may lead to an increase in the demand for the substitute good, _____.

Back

chicken

Front

Which of the following will cause the demand to move along the demand curve rather than shifting it?
preferences,
expectations,
price,
income

Back

price

Front

Which of these is most likely to happen to demand for clothes in a clothing store when blizzards keep customers at home? Options: The demand curve becomes steeper, The demand curve shifts to the right, The demand curve becomes flatter, The demand curve shifts to the left

Back

The demand curve shifts to the left

Front

Which of these would most likely increase the supply of soccer balls? Options: a government tax on sporting goods, a decrease in the price of raw materials, an increase in the supply of tennis balls, a transportation strike (truckers on strike)

Back

a decrease in the price of raw materials

Front

Which of these situations best illustrates market equilibrium? The amount of soap for sale matches the amount of soap that people want to buy.

Back

The amount of soap for sale matches the amount of soap that people want to buy.

Front

What might result from setting a price ceiling on the price of rent for apartments?

Back

More people want to rent apartments than the number of apartments available to rent.