ECO162- CHAPTER 4

What is the Equilibrium Price?

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What is the Equilibrium Quantity?

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When quantity supplied is smaller than quantity demanded, you have a ____________.

• shortage

• surplus

• deficit

• equilibrium

Point at which supply and demand curve intersect each other

• price ceiling

• excess demand

• equilibrium

• disequilibrium

Which of these demonstrates a surplus of goods?

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Which of these demonstrates a shortage of goods?

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Which of the following demonstrates price equilibrium?

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Price is currently above equilibrium. This will create excess__________. We would expect price to ___________.

• demand; increase

• demand; decrease

• supply; increase

• supply; decrease

What is the state in which market supply and demand balance each other, and as a result prices become stable?

• Market Price

• Market Equilibrium

• Market Disequilibrium

What is characterized by changes in conditions where supply and demand are out of balance?

• Market Price

• Market Disequilibrium

• Market Equilibrium