Market equilibrium

Which of those is not a function of price mechanism?

• To give incentives to producers and consumers

• To signal information to consumers and producers

• To ration scarce resources

• To protect smaller suppliers

If the demand is rather elastic and the supply is inelastic then

• the consumer surplus is smaller than producer surplus

• the producer surplus is smaller than consumer surplus

• the producer surplus equals consumer surplus

Calculate the consumer surplus

If the suppliers where to try to increase the price for a certain good then

• excess supply will occur

• excess demand will occur

• the demand will increase

• the quantity demanded will increase

To what can you reference while explaining the concept of market equilibrium in economics? (physics related question)

• Newton's first law

• Newton's second law

• Newton's third law

Freestyle - draw the "invisible hand of the market

In terms of social surplus, what does the supply curve represent?

• Marginal social cost

• Marginal soviet cooperation

• Marginal private cost

• Marginal social benefit

A famous instagram influencer promotes protein shakes, they become more popular and the demand for them increases. What will be the result for the protein shakes market, both short and long term?

• excess demand

• increase in the equilibrium quantity

• increase in equilibrium price

• decrease in equilibrium price

• decrease in the equilibrium quantity