Supply and Demand Equilibrium, Surplus, and Shortage 1

Supply and demand determine

• needs and wants.

• all goods produced

• the price for a good or service

• all of the other options

Equilibrium

• when there is a surplus

• when there is a shortage

• when there is both a surplus and a shortage

• when the producer and consumers agree on a price

The law of demand says

• producers will supply more when prices decrease

• producers will supply more when prices increase

• consumers will buy more when prices increase

• consumers will by less when prices increase

A producer will cause a shortage,

• if the price for a good is set too high.

• if the price for a good is set too low.

• if the price is set att the equilibrium point

• none of the other options

A price floor is when

• the government sets a mximum price

• the government sets a minimum price

• the government allows the market to decide the price for a good

• all of the other options

On a supply and emand graph, one can find the equilibrium price by locating

• only the demand curve

• only the supply curve

• where the demand and supply cross/intersect

• the title of the graph

A producer will cause a surplus

• if the price of a good is set too high

• if the price of a good is set too low

• if prices is set at the equilibrium point

• none of the other options

The law of supply says

• producers will supply more when prices decrease

• producers will supply more when prices increase

• consumers will buy more when prices decrease

• consumers will buy less when prices increase

Which factors can change/shift supply or demand?

• income, tastes, population

• taxes and subsides

• cost of production and competition

• all of the other options

A price ceiling is when

• the government sets a maximum price for a good

• the governmnet sets a minimum price of a good

• the government allows the market to decide the price for a good

• all of the other options