Market Equilibrium

True

False

Signaling information

Influencing demand

Rationing scarce resources

Giving incentives to consumers and producers

Prices are low

Prices are high

There is a full employment level of output

The market is in equilibrium

Adding up producer and consumer surplus

Dividing consumer surplus by producer surplus

Dividing consumer surplus by inflation rate

Multiplying consumer surplus by 2

True

False

Shift to the right

Shift to the left

To signal information to consumers and producers

To ration scarce resources

To decrease inflation

To shift the equilibrium

Excess supply

Excess demand

Fall in price

Increased quantity

When moved without disturbance - it will return to its original position

When moved it will remain in a fixed position

When moved to the left it shifts right

It moves to the right

Producer surplus

Government surplus

Consumer surplus