Font size
WorksheetsMarket equilibrium
Total questions: 10
Worksheet time: 2mins
New technology makes it possible for producers to produce more products at every given price level. What effect will this have on the equilibrium price and quantity in the industry
Price decrease; Quantity decrease
Price decrease; Quantity increase
Price no change; Quantity no change
Price increase; Quantity increase
When the market for a good is in equilibrium
there will be a shortage of goods in the economy.
quantity supplied equals quantity demanded.
quantity supplied exceeds quantity demanded.
quantity demanded exceeds quantity supplied.
When the price reduces to the equilibrium price, the problem of _____________ will be resolved
surplus
shortage
excess demand
unstable price
If a product is in shortage, we can conclude that its price
is in the equilibrium price level.
will fall in the near future.
is below the equilibrium price level.
is above the equilibrium price level.
When quantity supplied is smaller than quantity demand, you have a _?
Surplus
Equilibrium
Deficit
Shortage
An under supply or shortage causes prices to go up resulting in less demand.
True
False
A shortage causes prices to fall as the demand for a good is greater than the supply of that good.
TRUE
FALSE
