Seeking Equilibrium in Economics

Supply, Demand, and Equilibrium

Multiple Choice

Which scenario below could cause a change in the quantity supplied to go from point C to point D on the supply curve?

• The demand decreased

• The price decreased

• The price increased

Multiple Choice

Take a look at the graph below. Label the curves by filling in the blanks. The supply curve is __________________ and the demand curve is _________________.

• red ..... blue

• blue .... red

Multiple Choice

The Law of Supply states that when price goes up, supply...

• goes up

• goes down

• stays the same

• goes away

Multiple Choice

The law of demand states that when price goes up, demand...

• goes up

• goes down

• stays the same

• goes away

Multiple Choice

Refer to the graph. The movement from point A to point B on the graph shows

• a decrease in demand.

• an increase in demand.

• an increase in quantity demanded.

• a decrease in quantity demanded.

Multiple Choice

If the price of a substitute to good X increases, then

• The demand for good X will increase.

• The market price of good X will decrease.

• The demand for good X will decrease.

• The demand for good X will not change.

Multiple Choice

Which situation is most likely to lead to the lowest prices?

• There is only one producer making the good.
• Businesses secretly agree to share their profits.
• Competition between businesses is prohibited.
• Several producers compete to sell goods to the public.

Multiple Choice

Which statement expresses a central idea of how the laws of supply and demand work?

• The government sets the prices for goods and services.

• Prices are determined by the interaction of producers and consumers.

• Consumers alone determine the prices for goods and services.

• Technology dictates the prices charged for goods and services.

Multiple Choice

Mr. C goes to the ticket booth to buy tickets for a Bucks game. Mr. C is told that the game is sold out and no tickets are available. Which best explains why there are no basketball tickets available?

• The arena forgot to print enough tickets.

• The supply of tickets was greater than the demand.

• The arena charged too much money for each ticket.

• The demand for tickets was greater than the supply.

Multiple Choice

Which of the following best refers to the market equilibrium price?

• Surpluses depress the number of goods supplied.

• Shortages and surpluses will have no effect on the market.

• The government will not intervene in the market.

• The quantity demanded is the same as the quantity supplied.