Market Equilibrium V1

What happens if there is an increase in market demand for a good?

• price goes up quantity goes down

• price and quantity both increase

• price goes down quantity goes up

• price and quantity both decreases

What happens if there is a decrease in supply for a product

• price goes up quantity goes down

• price and quantity both increase

• price and quantity both decrease

• price goes down quantity goes up

What happens if there is a shortage for a good?

• price goes up QS and QD increases

• price goes down QD increases and QS decreases

• price goes up QD decreases and QS increases

• price goes up demand decreases and supply increases

what happens if there is a surplus in a market?

• price goes up QD and QS decrease

• price goes up demand and supply increases

• price goes down demand increases and supply decreases

• price goes down QS decreases and QD increases

Market Demand equals the:

• total amount sold in the market

• total demand in a market

• addition of all the individual demand curves at each price

• all of the above

Market Supply is obtained by

• totaling the individual supply at each price

• adding the total amount produced

• adding the total sold at each price

• all of the above

Which of the following will reduce the price and quantity in a market?

• decrease in price of a complement

• decrease in direct(income) tax

• increase in the cost of production

• decrease in price of a substitute

Which of the following will increase the price and reduce the quantity in a market?

• new technology

• an increase in the costs of production

• successful advertising campaign

• none of the above

Which of the following could cause a surplus at the initial equilibrium price?

• decrease in demand

• decrease in supply

• increase in demand

• none of the above

Which of the following would cause a shortage at the initial equilibrium ?

• decrease in demand 

• increase in supply

• decrease in supply

• none of the above