U3L3a HW Econ: Equilibrium

Define shortage, surplus, and equilibrium.

• Shortage is when demand exceeds supply, surplus is when supply exceeds demand, and equilibrium is when supply equals demand.

• Shortage is when supply exceeds demand, surplus is when demand exceeds supply, and equilibrium is when demand equals supply.

• Shortage is when supply equals demand, surplus is when demand equals supply, and equilibrium is when supply exceeds demand.

• Shortage is when demand equals supply, surplus is when supply equals demand, and equilibrium is when demand exceeds supply.

Identify the benefits of voluntary exchange.

• Increased efficiency and productivity

• Decreased market competition

• Higher taxes

• Reduced consumer choice

Define price signals and identify how prices allocate resources in a free market.

• Price signals are indicators that guide the allocation of resources in a free market by reflecting the supply and demand.

• Price signals are government-imposed controls on the allocation of resources.

• Price signals are irrelevant in a free market economy.

• Price signals are only used in planned economies.

Analyze the cause and effect of changes in specific markets.

• What are the causes of changes in specific markets?

• What are the effects of changes in specific markets?

• What are the causes and effects of changes in specific markets?

• How do changes in specific markets occur?

Predict what will happen to the equilibrium price and quantity when there is a change in a market.

• The equilibrium price will increase, and the equilibrium quantity will decrease.

• The equilibrium price will decrease, and the equilibrium quantity will increase.

• Both the equilibrium price and quantity will increase.

• Both the equilibrium price and quantity will decrease.

Identify the characteristics of elastic demand and inelastic demand.

• Elastic demand is sensitive to price changes, while inelastic demand is not.

• Elastic demand is not sensitive to price changes, while inelastic demand is.

• Both elastic and inelastic demand are sensitive to price changes.

• Neither elastic nor inelastic demand is sensitive to price changes.

When you use scissors, which blade cuts the paper?

• Top blade

• Bottom blade

• Both blades

• Neither blade

What is the equilibrium price and quantity in the given supply and demand graph?

• Equilibrium price is $3 and equilibrium quantity is 30.

• Equilibrium price is $4 and equilibrium quantity is 40.

• Equilibrium price is $5 and equilibrium quantity is 50.

• Equilibrium price is $2 and equilibrium quantity is 20.

According to the Demand Schedule, what is the quantity demanded when the price is $2?

• 50

• 30

• 70

• 90

According to the Supply Schedule, what is the quantity supplied when the price is $4?

• 40

• 30

• 50

• 60