Ch 16 Equilibrium

Question 1

Competitive market

Answer 1

Each economic agent takes the market price as given

Question 2

Equilibrium price

Answer 2

Price of a good where quantity demanded equals quantity supplied

Question 3

Taxes passing through to consumers

Answer 3

Perfectly elastic supply curve - ALL

Perfectly inelastic supply curve - NONE

Question 4

Deadweight loss

Answer 4

Loss of output (combined consumers’ and producers’ surpluses)