Equilibrium Prices

When demand and supply are combined on a graph, they make a(n)

• X

• Y

• C

• A

What is surplus?

• The quantity demanded is higher than the quantity supplied

• The quantity supplied is high than the quantity demanded

What is shortage?

• The quantity demanded is higher than the quantity supplied

• The quantity supplied is high than the quantity demanded

Which letter shows the area of a shortage?

• A

• B

• C

Which letter shows the equilibrium?

• A

• B

• C

Which letter shows the area of surplus?

• A

• B

• C

A price ceiling...

• would be below the equilibrium

• would be at the equilibrium

• would be above the equilibrium

A price floor...

• would be below the equilibrium

• would be at the equilibrium

• would be above the equilibrium

A price ceiling typically creates...

• a shortage

• a surplus

• equilibrium

What is a black market?

• The term for when business is good and profitable.

• The term for when business is losing money.

• When goods and services are exchanged illegally.