Equilibrium Price in the Market Place Activity

Which line represents the supply curve?

• Line 1

• Line 2

What is the market price (equilibrium) for cheeseburgers?

• 4 dollars

• 6 dollars

• 8 dollars

• 10 dollars

What is the equilibrium quantity for cheeseburgers?

• 5

• 14

• 18

• 27

What is the relationship between price and demand?

• As price increases, demand decreases.

• As price increases, quantity demanded decreases.

• As price increases, demand increases.

• As price increases, quantity demanded increases.

What is the relationship between price and supply?

• As price increases, supply decreases.

• As price increases, quantity supplied decreases.

• As price increases, supply increases.

• As price increases, quantity supplied increases.

What could happen as a result of the restaurant's price increase?

• The equilibrium price will change.

• There will be a shortage of cheeseburgers.

• There will be a surplus of cheeseburgers.

Now let's look at when the whole demand or supply curve shifts. What does the new line labeled "1" represent?

• An increase in demand

• An increase in supply

• A decrease in demand

• A decrease in supply

What will happen to the market price for cheeseburgers if there is a decrease in demand?

• The market price will increase.

• The market price will decrease.

• A decrease in demand

What situation could have caused the demand curve to shift to D1?

• The price of cheeseburgers increased.

• The price of cheeseburgers decreased.

• Cows go on strike, leading to a cheese and beef shortage.

• People decide that salads are a healthier and tastier lunch choice.

What will happen to the equilibrium quantity for cheeseburgers if there is a decrease in demand?

• The equilibrium quantity will decrease.

• The equilibrium quantity will increase.

• The equilibrium quantity will not change.