Supply And Demand Flashcards
When a market is in equilibrium
A) no shortage exists
B) quantity demanded equals quantity supplied
C) a price is established that clears the market
D) all the above
D)all the above
An increase in both demand and supply causes an
A) increase in equilibrium price but a decrease in equilibrium quantity.
B) increase in equilibrium quantity and either an increase or decrease in
equilibrium price.
C) increase in equilibrium quantity but a decrease in equilibrium price.
D) increase in equilibrium price and increase in equilibrium quantity.
B) increase in equilibrium quantity and either an increase or decrease in equilibrium price.
This question is based on Table 1. At a Qs of 120 units, the highest price consumers are willing to pay is A) £0.20 per unit. B) £0.40 per unit. C) £0.30 per unit. D) £0.5 per unit.
A) £0.20 per unit.
Use the data in Table 1 to answer this question. The equilibrium quantity is A) 40 units B) 60 units C) 80 units D) 100 units
C) 80 units
In Figure 1 a price ceiling at P0 means that
A) the market is in equilibrium because quantity demanded equals
quantity supplied.
B) there is a surplus in the market equal to the distance AB
C) there is a shortage in the market equal to the distance 0 Q1
D) there is a shortage in the market equal to the distance Q1 Q0
A) the market is in equilibrium because quantity demanded equals
If South Carolina experiences a late frost that damages the state’s peach
crop, then we would expect
A) the demand curve for peaches to shift downward and to the left.
B) the supply curve for peaches to shift outward and to the right.
C) the demand curve for peaches to shift upward and to the right.
D) the price of nectarines, a substitute fruit, to rise.
D) the price of nectarines, a substitute fruit, to rise.
In Figure 1 excess demand at the \_\_\_\_\_\_\_\_ of P1 is represented by the distance AB. The missing word is A) price ceiling B) price floor C) minimum price D) consumer surplus
A) price ceiling
