Price Equilibrium

What happens if there is surplus?

• Sellers offer their products by lowering the price

• Sellers offer their products by raising the price

• Buyers are easy to find

• Sellers stick to the price they are offering

Which of the following happens when the Qs is greater than the Qd?

• Equilibrium

• Surplus

• Shortage

• Consumer surplus

It is an implicit agreement between the buyers and the sellers

• Equilibrium

• Surplus

• Shortage

• Waste

The Law of Demand states that as price decreases...

• Quantity demanded decreases

• Quantity demanded increases

• Production increases

• Quality Decreases

If the government set the price at $700, would that be a price ceiling or floor?

• Price Ceiling
• Price Floor 
• Neither

If the government set the price at $300, what would be the result?

• Surplus of 4,000
• Surplus of 2,000
• Shortage of 4,000
• Shortage of 2,000

A review of the jargon: Is the minimum wage a “price ceiling” or a “price floor?

• price ceiling

• price floor

A review of the jargon: Is rent control a “price ceiling” or a “price floor?”

• price ceiling

• price floor

Is there a surplus or a shortage when the price is $10?

• surplus

• shortage

What does this graph illustrate about surplus, shortage, and equilibrium price?

• The Price is set above $6 will create a surplus

• At $6 dollars, you will have equilibrium.

• The price is set below $6 dollars, will c create a shortage

• The graph makes no sense