s808 Equilibrium

What is Market Equilibrium

• When the price of a product increases

• When quantity of product/service demanded by buyers is equal to quantity supplied by sellers

• When demand for product shifts to the right

• When quantity supplied is larger than quantity demanded

What factors can affect the market equilibrium

• Natural Disasters

• Technological Advancements

• Government Regulations

• Changes Population Size

1. If we know price has decreased, which way has demand and supply shifted?

• both to the left

• supply left, demand right

• both to the right

• supply right, demand left

If both supply and demand shift to the left, what happens to price and/or quantity demanded?

• increase in price

• decrease in price

• quantity demanded increase

• quantity demanded decrease

If the demand for a product increases while the supply remains constant, what will happen to the price and quantity in the market?

• Price increase

• Supply decreases

• quantity stays the same

• consumers begin to buy and resell products