Economics Determining Market Price

Equilibrium is defined when

• supply is limited and demand decreases.

• supply and demand meet.

• demand is higher than supply.

• supply is higher than demand.

Supply and demand coordinate to determine prices by working

• together.

• competitively.

• with other factors.

• separately.

On a graph, an equilibrium point is where

• a supply curve and a demand curve meet.

• a supply curve is higher than a demand curve.

• the supply and demand curves head up.

• the supply and demand curves head down.

In order to achieve equilibrium, what else must be included on the graph?

• disequilibrium

• supply curve

• excess supply

• excess demand

If the quantity supplied is greater than the quantity demanded, what must happen to the price in order to reach equilibrium?

• The price of the product will increase to meet equilibrium.

• The price of the product will decrease to meet equilibrium.

• Supply and demand must be raised.

• Supply and demand must be lowered.

What does "P" represent on the graph?

• the point where equilibrium is achieved

• the price at the equilibrium point

• the average price of goods sold

• the point where supply and demand drop

What does "Q” represent on the graph?

• the point where equilibrium is achieved

• the quantity at the equilibrium point

• the average cost of goods sold

• the point where supply and demand drop

How many goods must be supplied to achieve equilibrium?

• 15

• 20

• 25

• 30

Disequilibrium occurs when

• quantity supplied is equal to quantity demanded.

• quantity supplied does not equal quantity demanded.

• supply coordinates with price.

• supply coordinates with quantity.

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

• excess supply

• stable prices

• exact equilibrium

• increased production