Y10 Economics - C9 Price Determination

What is market equilibrium?

• When there is a surplus in the market

• When quantity demanded is greater than quantity supplied

• When quantity supplied is greater than quantity demanded

• When quantity demanded equals quantity supplied

What is the equilibrium price?

• The price at which the demand curve intersects the supply curve

• The price at which there is a shortage

• The price at which demand exceeds supply

• The price at which supply exceeds demand

What occurs during market disequilibrium?

• Quantity demanded is either higher or lower than quantity supplied

• Quantity demanded equals quantity supplied

• The market is cleared of shortages

• There is no excess demand or supply

What is excess demand?

• When market price is above equilibrium price

• When market price is below equilibrium price

• When quantity supplied equals quantity demanded

• When there is no demand for the product

What does excess supply refer to?

• A situation where there is a shortage

• A situation where quantity demanded equals quantity supplied

• A situation where market price is above equilibrium price

• A situation where market price is below equilibrium price

What happens when the quantity demanded is greater than the quantity supplied?

• The price is at equilibrium

• The market is in equilibrium

• There is a shortage

• There is a surplus

What is the result of a market price being below the equilibrium price?

• No effect on the market

• Equilibrium in the market

• Shortage in the market

• Surplus in the market

What does the demand curve represent?

• The surplus in the market

• The equilibrium price

• The quantity demanded at various prices

• The quantity supplied at various prices

What does the supply curve represent?

• The equilibrium quantity

• The quantity supplied at various prices

• The quantity demanded at various prices

• The excess demand

What is a characteristic of market equilibrium?

• There is always a shortage

• There is always a surplus

• Prices are always rising

• Quantity demanded equals quantity supplied