What is meant by market price?

• Price set by the government.

• Price determined by producers.

• Price offered by sellers to buyers.

• Price determined by the quality of goods.

• All are correct.

Which factor does not affect the formation of market price?

• Demand and supply.

• Production costs.

• Availability of goods.

• Government regulations.

• All are correct.

What is meant by equilibrium price?

• A high price so that all goods can be sold.

• A price above the market price.

• A price where the quantity of goods demanded equals the quantity supplied.

• A price given a massive discount.

• All are correct.

How does a change in the quantity of goods supplied affect market price?

• If the quantity supplied increases, the price will fall.

• If the quantity supplied increases, the price will rise.

• The quantity supplied does not affect market price.

• Market price will remain stable.

• All are correct.

What causes an increase in market price?

• Demand decreases.

• Supply decreases.

• Production costs decrease.

• Supply increases.

• All are correct.

What is meant by maximum price?

• The highest price allowed by the government.

• The price at which sellers do not make a profit.

• The price desired by buyers.

• The price set by trade associations.

• All are correct.

What will happen if the market price is above the equilibrium price?

• Surplus of goods occurs.

• Shortage of goods occurs.

• No change in the quantity supplied.

• No buyers are interested.

• All are correct.

What is meant by minimum price?

• The lowest price allowed by the government.

• The price set by consumers.

• The price desired by sellers.

• The price applied in the black market.

• All are correct.

What causes a decrease in market price?

• Demand increases.

• Supply decreases.

• Production costs increase.

• Demand decreases.

• All are correct.

What will happen if the market price is below the equilibrium price?

• Surplus of goods occurs.

• Shortage of goods occurs.

• Price will remain stable.

• There will be no change in the quantity supplied.

• All are correct.