SUPPLY & DEMAND

 What occurs at market equilibrium?

• The quantity demanded equals the quantity supplied.

• • The government sets the price.

• • The supply curve is steeper than the demand curve.

• • There is a surplus of goods in the market.

 If the price is above the equilibrium price, what will happen in the market?

• •  A shortage will occur.

• • A surplus will occur.

• The market will remain in equilibrium.

• • The government will intervene.

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

• •  There will be no change in the market.

• • There will be a surplus of goods.

• • There will be a shortage of goods.

• • The quantity demanded and supplied will be equal.

When demand increases and supply remains constant, what happens to the equilibrium price and quantity?

• • Price increases and quantity decreases.

• • Price decreases and quantity increases.

• • Price increases and quantity increases

• • Price decreases and quantity stays the same.

Which of the following is most likely to cause a shift in the supply curve?

• A change in consumer income.

• • A change in the price of related goods.

• • A change in production technology.

• •  A change in the price of the good itself.

What happens to the equilibrium price and quantity when supply decreases and demand remains constant?

• • Price increases and quantity increases.

• • Price decreases and quantity stays the same.

• • Price decreases and quantity increases.

• • Price increases and quantity decreases.

Which factor is most likely to cause a shift in the demand curve?

• • A change in the number of suppliers.

• • A change in consumer preferences.

• A change in production technology.

• • A change in the price of the good itself.

What is the result of a simultaneous increase in both demand and supply?

• • Price increases and quantity decreases.

• • Price remains uncertain and quantity increases.

• • Price increases and quantity remains uncertain.

• • Price decreases and quantity increases.