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Market equilibrium

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

When quantity demand smaller than quantity supply the price will usually?

a)

increase

b)

decrease

c)

remain the same

d)

equilibrium

2.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
3.
What is the Equilibrium Quantity?
a)
50
b)
60
c)
70
d)
80
4.

When quantity supplied is smaller than quantity demanded, you have a ____________.

a)

shortage

b)

surplus

c)

deficit

d)

equilibrium

5.

Point at which supply and demand curve intersect each other

a)

price ceiling

b)

excess demand

c)

equilibrium

d)

disequilibrium

6.
Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers
a)
are different.
b)
are equal.
c)
is higher for the product demanded.
d)
is higher for the product supplied.
7.
Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers
a)
are different.
b)
are equal.
c)
is higher for the product demanded.
d)
is higher for the product supplied.
8.
What is the equilibrium quantity in this graph?
a)
$1.50
b)
$1.00
c)
600
d)
800
9.
Equilibrium in a market means which of the following?
a)
the point at which quantity supplied and quantity demanded are the same
b)
the point at which unsold goods begin to pile up
c)
the point at which suppliers begin to reduce prices
10.

The demand function and supply function for a good in the market are as follows:


Qd = 140 - 10p

Qs = 20 + 10p


What is the Pe?

a)

Rm60

b)

Rm80

c)

Rm8

d)

Rm6

11.

The demand function and supply function for a good in the market are as follows:


Qd = 140 - 10p

Qs = 20 + 10p


What is the Qe?

a)

80

b)

200

c)

60

d)

220

12.

Which of the following is a way that a firm can eliminate a surplus?

a)

raise prices

b)

create a new product

c)

offer a sale on the item

13.

What will happen if there is more supply in the market than there is a demand of the product?

a)

shortage

b)

surplus

c)

equilibrium

14.

A shortage causes prices to fall as the demand for a good is greater than the supply of that good.

a)

TRUE

b)

FALSE