Equilibrium Price and Quantity, Excess Demand and Excess Supply

What is the definition of equilibrium price?

• The price at which the quantity of goods and services supplied is equal to the quantity demanded.
• The price at which the quantity of goods and services supplied is greater than the quantity demanded.
• The price at which the quantity of goods and services demanded is greater than the quantity supplied.
• None of the above.

What are some factors that can affect equilibrium price?

• Changes in the cost of production
• Changes in consumer preferences
• Changes in government regulations
• All of the above

What is the definition of equilibrium quantity?

• The quantity of goods and services supplied at equilibrium price.
• The quantity of goods and services demanded at equilibrium price.
• The quantity of goods and services supplied that is greater than the quantity demanded.
• The quantity of goods and services demanded that is greater than the quantity supplied.

What is the definition of excess demand?

• The situation that occurs when the quantity of goods and services demanded is greater than the quantity supplied.
• The situation that occurs when the quantity of goods and services supplied is greater than the quantity demanded.
• The situation that occurs when the equilibrium price is greater than the market price.
• The situation that occurs when the equilibrium price is less than the market price.

What is the definition of excess supply?

• The situation that occurs when the quantity of goods and services supplied is greater than the quantity demanded.
• The situation that occurs when the quantity of goods and services demanded is greater than the quantity supplied.
• The situation that occurs when the equilibrium price is greater than the market price.
• The situation that occurs when the equilibrium price is less than the market price.

What is the most common way to show equilibrium price and quantity on a supply and demand diagram?

• The intersection of the supply and demand curves.
• The point on the supply curve where the quantity supplied is equal to the quantity demanded.
• The point on the demand curve where the quantity supplied is equal to the quantity demanded.
• All of the above.

What is an example of a shift in the supply curve?

• A decrease in the cost of production.
• An increase in the price of a substitute good.
• A decrease in the price of a complementary good.
• All of the above.

What is an example of a shift in the demand curve?

• An increase in consumer income.
• A decrease in the price of a substitute good.
• An increase in the price of a complementary good.
• All of the above.

What is a way to address excess demand?

• Increase the supply of goods and services.
• Decrease the demand for goods and services.
• Use price controls to limit the price of goods and services.
• All of the above.

What is a way to address excess supply?

• Decrease the supply of goods and services.
• Increase the demand for goods and services.
• Use price supports to increase the price of goods and services.
• All of the above.