Economics Quiz

What is equilibrium in a market?

• When the price is high

• When opposing forces balance each other

• When there is a surplus

• When there is a shortage

What happens when the demand curve shifts rightward?

• There is a surplus

• There is a shortage

• The equilibrium quantity decreases

• The equilibrium price rises

What is the equilibrium price and quantity of milk if Demand: P = 12 – 0.5Qd and Supply: P = 0.1Qs?

• Price: $2.50, Quantity: 25 million gallons

• Price: $3, Quantity: 15 million gallons

• Price: $2, Quantity: 20 million gallons

• Price: $2, Quantity: 19 million gallons

What is the effect of an increase in demand and an increase in supply on the equilibrium quantity?

• The equilibrium price rises

• The equilibrium quantity decreases

• The equilibrium quantity increases

• The equilibrium price falls

How does a decrease in both demand and supply affect the equilibrium quantity?

• The equilibrium price rises

• The equilibrium price falls

• The equilibrium quantity increases

• The equilibrium quantity decreases

What happens when supply increases in the milk market?

• The equilibrium price rises

• The equilibrium price falls

• The equilibrium quantity decreases

• The equilibrium quantity increases

What is the new quantity of milk sold in the marketplace if the government sets a minimum price of $2.50 per gallon of milk?

• 25 million gallons

• 20 million gallons

• 19 million gallons

• 15 million gallons

How does a decrease in demand and an increase in supply affect the equilibrium price?

• The equilibrium price falls

• The equilibrium price rises

• The equilibrium quantity decreases

• The equilibrium quantity increases

What is the impact of an increase in demand and a decrease in supply on the equilibrium price?

• The equilibrium quantity decreases

• The equilibrium price rises

• The equilibrium price falls

• The equilibrium quantity increases

What is the outcome of a shift of the demand curve to the right?

• There is a surplus

• There is a shortage

• The equilibrium price rises

• The equilibrium quantity decreases