Demand, Supply and Equilibrium price

How would an economist establish the market demand curve for a private good?

• by adding consumer surplus to total expenditure

• by combining individual demand curves horizontally

• by combining the price elasticity of individual demands

• by multiplying price by quantity demanded

Point at which supply and demand come together

• price ceiling
• excess demand
• equilibrium
• disequilibrium

When quantity demanded is more than quantity supplied

• price ceiling
• excess demand
• equilibrium
• disequilbrium

When quantity supplied is not equal to quantity demanded

• price ceiling
• excess demand
• equilibrium
• disequilibrium

When quantity supplied is greater than the quantity demanded, what is the condition know as?

• abundant supply
• disequilibrium
• excess availability
• excess supply.

Equilibrium in a market means which of the following?

• the point at which quantity supplied and quantity demanded are the same
• the point at which unsold goods begin to pile up
• the point at which suppliers begin to reduce prices

Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store are reduced. What causes this change?

• Prices or availability of substitutes

• Prices or availability of complementary goods

• Change in the weather or season

• Change in the number of buyers

New technology advances the rate at which furniture can be assembled. Why does this change the supply?

• There is a change in cost of production.

• The number of producers changes.

• The expectations of consumers changes.

• The output rate declines.

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.

Which of the following would NOT be a determinant of demand?

• The price of related goods

• Income

• Tastes

• The prices of the inputs used to produce the good