QRC Supply Demand and Elasticity

Define market equilibrium

• Where quantity demanded is less than quantity supplied

• Where quantity demanded is greater than quantity supplied

• Where quantity demanded is equal to quantity supplied

Define a shortage

• Where quantity demanded is less than quantity supplied

• Where quantity demanded is greater than quantity supplied

• Where quantity demanded is equal to quantity supplied

Define a surplus

• Where quantity demanded is less than quantity supplied

• Where quantity demanded is greater than quantity supplied

• Where quantity demanded is equal to quantity supplied

Which statement below would be the most correct to describe the equilibrium price?

• $600

• $600 per month

• $500 per month

• $700

Which statement below would be the most correct to describe the equilibrium quantity ?

• 15 rental houses

• 15,000

• 15,000 rental houses

• 15

If the current price is $800, which of the following would be the best description for the situation that exists in the market

• There is a shortage of 12 houses

• There is a shortage of 12000 houses

• There is a surplus of 12

• There is a surplus of 12000 houses

If the current price is $300, which of the following would be the best description for the situation that exists in the market

• There is a shortage of 18 houses

• There is a shortage of 18000 houses

• There is a surplus of 18

• There is a surplus of 18000 houses

If the current price is $800, how will market equilibrium be restored?

• Consumers will bid up the price

• Producers will lower the price

• The price will not change

• Government will add a tax

If the current price is $300, how would market equilibrium be restored?

• Consumers will bid up the price

• Producers will lower the price

• The price will not change

• Government will put in a subsidy

If the current price is $300, how many houses will be sold ?

• 6000 houses

• 24000 houses

• 15000 houses

• $600