English Vocabulary for Market Equilibrium

What is market equilibrium?

• A situation where demand exceeds supply

• A situation where supply exceeds demand

• A situation where demand and supply are equal

• A situation where there is no demand or supply

What happens to price in a market equilibrium?

• Price increases

• Price decreases

• Price remains constant

• Price becomes unpredictable

What happens to quantity in a market equilibrium?

• Quantity increases

• Quantity decreases

• Quantity remains constant

• Quantity becomes unpredictable

What is the role of price in market equilibrium?

• Price determines demand

• Price determines supply

• Price determines both demand and supply

• Price has no role in market equilibrium

What happens if there is excess demand in a market?

• Price increases

• Price decreases

• Price remains constant

• Price becomes unpredictable

What happens if there is excess supply in a market?

• Price increases

• Price decreases

• Price remains constant

• Price becomes unpredictable

What is the term used to describe the price at which quantity demanded equals quantity supplied?

• Market price

• Equilibrium price

• Supply price

• Demand price

What is the term used to describe the quantity bought and sold at the equilibrium price?

• Market quantity

• Equilibrium quantity

• Supply quantity

• Demand quantity

What happens if there is a shortage in a market?

• Price increases

• Price decreases

• Price remains constant

• Price becomes unpredictable

What happens if there is a surplus in a market?

• Price increases

• Price decreases

• Price remains constant

• Price becomes unpredictable