Chapter 6 Econ Quiz

1. When does Equilibrium occur? 

• When profits equal costs

• When the lines cross

• When supply and demand are NOT equal

• When supply and demand ARE equal

When does disequilibrium ocurr?

• When profits equal costs

• When supply and demand are NOT equal

• When supply and demand are equal

• When the lines cross

1. When the price of something is too high, what are two things that could happen in response to that? (think, how can they get rid of that extra supply, and what happens if they do nothing?)

• Surplus, lower the price

• Shortage, raise the price

• Surplus, raise the price

• Shortage, lower the price

1. When the price of something is too low, what are two things that could happen in response to that? (think, how can they make sure they don’t run out, and what happens if they do nothing?)

• Raise the price, surplus

• Raise the price, shortage

• Lower the price, surplus

• Lower the price, shortage

1. Does an effective price ceiling make things more expensive or less expensive? 

• Less

• More

1. Does an effective price floor make things more expensive or less expensive? 

• More

• Less

Did you study the Quizlet?

• Yes

• No

Where will prices always gradually go to over time? 

• Surplus

• Shortage

• Equilibrium

• Disequilibrium

If the demand curve shift to the right, what will happen to the equilibrium price? 

• Goes down

• Goes up

• Stays the same

If the supply curve shifts to the right, what will happen to the equilibrium price? 

• Goes up

• Goes Down

• Stays the same