C6 Assessment - Demand, Supply and Pricing

Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers:

• are different

• are equal

• is higher for the product demanded

• is higher for the product supplied

On a market demand and supply graph, the vertical axis shows:

• demand

• equilibrium

• prices

• quantity

On a market demand and supply graph, the horizontal axis shows:

• demand

• equilibrium

• prices

• quantity

On a market demand and supply graph, the point of market equilibrium always happens:

• at the highest point on the demand curve

• at the point where the demand and supply curves intersect

• at the lowest point of the supply curve

• at the center point of the graph, irrespective of the curves

When there is a shortage, producers raise prices in an attempt to:

• separate the quantity supplied and demanded

• raise the quantity demanded

• equalize the quantity supplied and demanded

• lower the quantity supplied

Suppliers often reduce prices because they:

• have a shortage of products to sell

• have a surplus of products to sell

• want to decrease consumer demand

• want to increase the product supply

A state of disequilibrium happens when an imbalance exists between

• quality supplied and quality demanded

• quality supplied and quantity demanded

• quantity supplied and quality demanded

• quantity supplied and quantity demanded

Supply can be changed by

• equilibrium

• income

• input costs

• substitutes

In the price system of a market economy, prices are determined by

• central planning

• market forces

• political forces

• private investors

The price system helps to allocate resources efficiently because prices will adjust until

• an equal number of goods and services are sold

• the maximum number of goods and services are sold

• the minimum number of goods and services are sold

• many more goods than services are sold