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MARKET EQUILIBRIUM

Total questions: 13

Worksheet time: 5mins

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.

Point at which supply and demand curve intersect each other

a)

price ceiling

b)

excess demand

c)

equilibrium

d)

disequilibrium

5.
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.
6.
What is the equilibrium quantity in this graph?
a)
$1.50
b)
$1.00
c)
600
d)
800
7.
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
8.

When the quantity demanded is greater than the quantity supplied it is known as

a)

equilibrium

b)

a shortage

c)

a surplus

d)

an opportunity cost

9.

Any price where quantity demanded is not equal to the quantity supplied is known as disequilibrium.

a)

true

b)

false

10.

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

11.

When demand increases, the equilibrium price and quantity supplied will both

a)

increase

b)

decrease

c)

stay the same

12.

Suppose that the market for coats is described as follows: What is the equilibrium price of coats?

a)

120

b)

100

c)

80

d)

60

13.

Suppose the government sets a price ceiling of $80. How large will the shortage be?

a)

5 million coats

b)

4 million coats

c)

3 million coats

d)

2 million coats