APPLIED ECONOMICS - MARKET PRICE

The equilibrium point is the level where the demand and supply curves intersect.

• True

• False

If the price is above the equilibrium level, the quantity demanded is greater than the quantity supplied.

• TRUE

• FALSE

If the price is below the equilibrium point, the quantity demanded is lesser than the quantity supplied.

• TRUE

• FALSE

The law of demand applies during online sales of computers when consumers rush to buy products at 30% discounts.

• TRUE

• FALSE

The law of supply applies when the producers supply more masks at a higher price; selling at higher quantity at a higher price increases revenue.

• TRUE

• FALSE

If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied.

• TRUE

• FALSE

Shortage will exist if the price is below the equilibrium point

• TRUE

• FALSE

The law of supply and demand explains the interaction between the sellers of a product and the buyers.

• TRUE

• FALSE

The demand curve is always downward sloping due to the law of diminishing marginal utility.

• TRUE

• FALSE

The supply curve shows an upward slope.

• TRUE

• FALSE