Equilibrium, Disequilibrium & Price Controls

Front

This part of the market determines DEMAND: buyers, sellers, suppliers, store owners

Back

buyers

Front

This part of the market determines SUPPLY

Back

sellers

Front

For the law of demand, as price rises, what happens to quantity demanded?

Back

it goes down

Front

For the law of supply, as price rises, what happens to quantity supplied?

Back

it goes up

Front

When quantity supplied and quantity demanded is equal

Back

equilibrium

Front

If a price is above equilibrium price, it creates a...

Back

surplus

Front

If a price is below the equilibrium price it creates a...

Back

shortage

Front

What does this curve represent? Options: demand, supply, equilibrium, shortage

Back

supply

Front

What does this curve represent? Options: supply, equilibrium, demand, surplus

Back

demand

Front

What could cause the shift from D1 to D2? Options: A change in preferences, A change in price, A change in quantity demanded, A change in quantity supplied

Back

A change in preferences