Economy-Ch 4 (Market Equilibrium)

Price is currently above equilibrium.

This will create excess _ .We should expect price to _.

• demand/increase

• supply/decrease

• demand/decrease

• supply/increase

What is the state in which market Supply and Demand balance each other ,and as a result prices become stable?

• Market price

• Market disequilibrium

• Market equilibrium

• Price ceiling

When quantity supplied is smaller than quantity demand, you have a _?

• Surplus

• Equilibrium

• Deficit

• Shortage

An under supply or shortage causes prices to go up resulting in less demand.

• True

• False

Point of which supply and demand curve intersect each other?

• Price ceiling

• Excess demand

• Equilibrium

• Disequilibrium

What is characterized by changes in condition where supply and demand are out of balance?

• Market price

• Market Disequilibrium

• Market Equilibrium

• Price ceiling

What will happen if there is more supply in the market than there is a demand of the product?

• Surplus

• equilibrium

• Shortage

• Excess demand

What will happen if there is not enough supply in the market for a demand of the product?

• Equilibrium

• Shortage

• Market Price

• Surplus

If both ,the supply and demand increase at the same time,the equilibrium price will definitely increase

• True

• False

An upward stopped supply curve is consistent with the law of supply

• True

• False