Lesson 5: Market Equilibrium

Market Equilibrium exist when quantity supplied is ______ than/to the quantity demanded.

• Greater

• Equal

• Less

• Over

What is the result if market demand is greater than market supply?

• Surplus

• Shortage

• Market Equilibrium

• Free Enterprise

As price of commodity increases, suppliers are attracted to sell more while buyers tend to ____.

• Increase their consumption

• Reduce their consumption

• Maintain their consumption

• Not to consume

What is the result if market supply is greater than market demand?

• Surplus

• Shortage

• Market Equilibrium

• Free Enterprise

Price of goods tends to ____ if there is an excess supply.

• Rise

• Drop

• Remain constant

If the supply of the good is less than its demand, price will decrease.

• True

• False

Price of goods tends to ____ if there is an excess demand.

• Rise

• Drop

• Remain constant

The situation where consumers and producers are satisfied with their decision, and the market is in balance.

• Surplus

• Shortage

• Market Equilibrium

• Free Enterprise

Price is the first determinant of demand and supply.

• True

• False

If the supply of the good is greater than its demand, price will decrease.

• True

• False