L3: Concept of Marketing equilibrium

What is the definition of market equilibrium?

• The point where demand exceeds supply

• The point where supply exceeds demand

• Quantity demanded equals quantity supplied

• The point where the market experiences inflation

What results from a shortage in the market?

• Prices tend to decrease

• Prices tend to increase

• Supply exceeds demand

• Market equilibrium is achieved

What is a surplus in the market?

• When demand exceeds supply

• When supply is less than demand

• When supply exceeds demand

• When the market is in equilibrium

Label the diagramm

a

b

c

Market equilibrium

Shortage

Surpluss

What does the term "Equilibrium" refer to in a market context?

• A) A situation where demand exceeds supply

• B) A situation where supply exceeds demand

• C) A situation in which opposing forces balance each other

• D) A situation where market prices are at their lowest

At what price level does the market reach equilibrium according to the table?

• Price 10

• Price 6

• Price 7

• Price 5

What does the demand function describe in the context of market equilibrium?

• The relationship between the supply of a product and its price

• The relationship between the demand for a product (the dependant variable) and its determinants (the independent variables)

• The calculation of total market sales

• The impact of marketing on product demand

What is the effect on equilibrium price when there is an increase in supply?

• Increase

• Decrease

• No change

• Ambiguous

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

• Decrease

• No change

• Increase

• Ambiguous

How does the total effect on equilibrium price manifest when considering changes in both supply and demand?

• Increase

• Decrease

• No change

• Ambiguous