6.1 Supply and Demand Together

Open Ended

Why is the concept of equilibrium important in understanding how markets work?

Multiple Choice

Which of the following statements best describes a market shortage?

• A shortage occurs when the quantity supplied is greater than the quantity demanded.

• A shortage occurs when the quantity supplied is less than the quantity demanded.

• A shortage occurs at prices above equilibrium price.

• A shortage is the same as a surplus.

Multiple Choice

What happens when the quantity supplied of a good is greater than the quantity demanded?

• A surplus occurs

• A shortage occurs

• Equilibrium is reached

• Prices rise

Multiple Select

Which of the following scenarios can lead to a surplus in the market?

• Decrease in demand

• Increase in demand

• Decrease in supply

• Increase in supply

Open Ended

Explain how changes in supply and demand can affect the equilibrium price.

Open Ended

How does price act as a signal for producers and consumers in the market?

Multiple Choice

Which of the following best describes a price ceiling?

• A price set above the equilibrium price

• A price set below the equilibrium price

• A price set at the equilibrium price

• A price set by speculators

Open Ended

Explain how speculators can influence price stability in markets. Use examples if possible.

Open Ended

How does the concept of equilibrium help us understand the relationship between supply and demand in a market?

Multiple Choice

What happens to prices when there is a shortage in the market?

• Prices rise

• Prices fall

• Prices stay the same

• Prices fluctuate randomly