Equilibrium

What is the definition of demand for a good or service?

• The quantity of the good or service producers are willing to sell at each price

• The quantity of the good or service consumers are willing and able to buy at each of a range of prices

• The quantity of the good or service that is imported from other countries

• The quantity of the good or service that is available in the market

What does the law of demand state?

• As price decreases, quantity demanded decreases

• As price increases, quantity demanded decreases

• As price decreases, quantity demanded increases

• As price increases, quantity demanded increases

What happens to the demand curve when there is an increase in demand?

• It shifts left

• It becomes flatter

• It becomes steeper

• It shifts right

What is the main determinant of supply for a good or service?

• Market demand

• Consumer preferences

• Producer costs of production

• Government regulations

What is the law of supply?

• As price increases, quantity supplied increases

• As price decreases, quantity supplied decreases

• As price decreases, quantity supplied increases

• As price increases, quantity supplied decreases

What happens to the supply curve when there is a decrease in supply?

• It shifts right

• It shifts left

• It becomes flatter

• It becomes steeper

What is the equilibrium price in a market?

• The price at which there is no demand for the product

• The price at which quantity demanded equals quantity supplied

• The price at which quantity supplied exceeds quantity demanded

• The price at which quantity demanded exceeds quantity supplied

What happens to the market equilibrium when there is an increase in supply?

• Equilibrium price decreases and equilibrium quantity increases

• Equilibrium price increases and equilibrium quantity decreases

• Equilibrium price decreases and equilibrium quantity decreases

• Equilibrium price increases and equilibrium quantity increases

What is the main factor that can cause a decrease in demand for a product?

• Increase in consumer income

• Decrease in prices of substitutes

• Negative publicity about the product

• Decrease in taxes on the product

What is the market force that restores equilibrium when there is a shortage in the market?

• Decrease in supply

• Increase in demand

• Increase in supply

• Decrease in demand