What is a market situation where quantity demanded is greater than quantity supplied?

• Equilibrium
• Shortage
• Surplus

What is a market situation where quantity supplied is greater than quantity demanded?

• Shortage
• Equilibrium
• Surplus

What is the location called where supply and demand curves intersect?

• Shortage
• Quantity Supplied
• Equilibrium
• Disequilibrium

What is the letter used to show the price received by producers after a subsidy has been introduced?

• A
• B
• P
• Q

What is the name of a payment made from the government to producers?

• Surplus
• Sales Tax
• Subsidy
• Schedule

A Price Maximum will lead to surplus in the market

• True
• False

A Price Minimum will lead to a surplus in the market.

• True
• False

Price controls are set by the government

• True
• False

How do you work out the cost of a subsidy to the government?

• Subsidy per unit x Q
• Subsidy per unit x Q1
• P1 x Q1
• P x Q

How do you determine the price paid by consumers after a subsidy?

• P
• P1