Equilibrium-Shortage-Surplus

Equilibrium-Shortage-Surplus

Multiple Choice

Equilibrium is achieved in the market when...

• the price is perfect

• the quantity is perfect

• the demand and supply are equal

Multiple Select

Some things that can lead to a shortage are...

• low demand

• low prices

• not enough resources

• too many producers

Multiple Choice

Shortages tend to have what effect on prices?

• Prices go down

• Prices go up

• Prices remain stagnant

Multiple Select

Some factors which can cause a surplus are..

• high prices

• high demand

• overproduction

• recession period

Multiple Choice

When sellers lower their prices due to a surplus of goods, this is in accordance with...

• the law of diminishing returns

• the law of supply

• the law of demand