C3: Market Equilibrium & Elasticity_UTMspace

What is market equilibrium?

• When quantity demanded exceeds quantity supplied

• When quantity supplied exceeds quantity demanded

• When quantity demanded equals quantity supplied

• When prices fluctuate randomly

During an MCR concert, demand for bottled water spikes. If supply remains constant, what happens to equilibrium price and quantity?

• Price falls, quantity increases

• Price rises, quantity increases

• Price rises, quantity decreases

• Price and quantity remain unchanged

If Montigo releases limited-edition tumblers and supply decreases, what happens assuming demand is constant?

• Price falls, quantity increases

• Price rises, quantity decreases

• Price remains constant

• Quantity remains unchanged

Aina Abdul promotes tiramisu on TikTok. If demand increases but supply remains constant, what happens to equilibrium?

• Price and quantity decrease

• Price increases, quantity increases

• Price increases, quantity remains constant

• Price remains constant, quantity increases

Blind boxes become less trendy among Gen Z. What happens to demand and equilibrium price?

• Demand increases, price rises

• Demand decreases, price falls

• Demand remains constant

• Price remains unchanged

What does a surplus in the market indicate?

• Quantity demanded > quantity supplied

• Quantity supplied > quantity demanded

• Prices are too low

• Demand is perfectly elastic

Uncle Roger criticizes overpriced matcha drinks. If demand drops and supply remains constant, what happens?

• Price rises

• Price falls

• Quantity increases

• Supply shifts left

Which of the following best describes consumer surplus?

• The amount producers gain from selling

• The difference between what consumers are willing to pay and what they actually pay

• The total cost of production

• The price elasticity of demand

If the price of matcha latte increases and quantity demanded drops significantly, demand is:

• Inelastic

• Elastic

• Unitary

• Perfectly inelastic

Matcha latte and matcha strawberry are substitutes. If the price of matcha strawberry rises, cross elasticity is:

• Negative

• Zero

• Positive

• Undefined