DA: DETERMINATION OF EQUILIBRIUM PRICE

The price at which market demand is equal to market supply

• a. market price

• b. equilibrium price

• c. Both a & b

• d. none of the above

The quantity demanded and supplied at the equilibrium price is

• equilibrium quantity

• market demand

• market supply

• quantity demanded and supplied

In a situation of excess supply, market price tends to ________.

• increase
• remain constant
• decrease
• None of the above.

If the prevailing price is less than the equilibrium price, the market demand will be _____ than the market supply.

• equal to
• greater than
• less than
• none of the above