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- 1. Multiple ChoiceThe market equilibrium price is the price at whichsurpluses depress the number of goods suppliedshortages and surpluses will have no effect on the marketthe government will not intervene in the marketthe quantity demanded is the same as the quantity supplied
- 2. Multiple ChoiceIn economics, a shortage of a product occurs whenthe product's price falls below its market-clearing levelthe product's market-clearing level reduces overall demandthe people who buy the product consume more than they needthe businesses producing the product become less efficient
- 3. Multiple Choice
The point where supply and demand are balanced is?productdemandsurplusequilibrium - 4. Multiple ChoiceWhen there is a shortage the price will usually?risefallremain the sameequilibrium
- 5. Multiple ChoiceWhat is the Equilibrium Quantity?50607080
- 6. Multiple ChoiceIf the Price is $2, there will be...A surplus of 45A shortage of 85A shortage of 45A surplus of 85
- 7. Multiple ChoiceIn order to reduce shortages, business owners will likely ____ prices.increasedecreasesetfix
- 8. Multiple ChoiceWhat is the Equilibrium Price?1234
- 9. Multiple ChoiceWhat is the Equilibrium Quantity?50607080
- 10. Multiple ChoiceWhen quantity supplied is greater than quantity demanded, you have a ____________.shortagesurplusdeficitequilibrium
- 11. Multiple ChoiceIf a market is at equilibrium and if there is a sudden increase in demand, you have asurplusshortageStays the same
- 12. Multiple ChoiceOn the market demand and supply graph, the vertical axis showsdemand.equilibrium.prices.quantity.
- 13. Multiple ChoiceOn the demand and supply graph, the horizontal axis showsdemand.equilibrium.prices.quantity.
- 14. Multiple ChoiceWhen there is a shortage, producers raise prices in an attempt toseparate the quantity supplied and demanded.raise the quantity demanded.equalize the quantity supplied and demanded.lower the quantity supplied.
- 15. Multiple ChoiceA state of disequilibrium happens when an imbalance exists betweenquality supplied and quality demanded.quality supplied and quantity demanded.quantity supplied and quality demanded.quantity supplied and quantity demanded.
- 16. Multiple ChoiceIn the price system of a market economy, prices are determined bycentral planning.market forces.political forces.private investors.
- 17. Multiple ChoiceHigher prices generallydiscourage consumers from seeking a substitute.discourage producers from entering a market.motivate consumers to buy.motivate producers to enter a market.
- 18. Multiple ChoiceLower prices generallydiscourage consumers from seeking a substitute.discourage producers from leaving a market.motivate consumers to buy.motivate producers to enter the market.
- 19. Multiple ChoiceThe appearance of a supply curve isan upward slope, bottom left to top right.a downward slope, top left to bottom right.a horizontal line.a vertical line.
- 20. Multiple ChoiceWhen consumers demand more goods and services at every price, equilibrium price willfall.fluctuate.rise.stay the same.
- 21. Multiple ChoiceWhen producers supply more, equilibrium price willfall.fluctuate.rise.stay the same.
- 22. Multiple ChoiceA surplus happens whenprices are too low relative to consumer demand.prices are too high relative to consumer demand.prices are too low relative to producer demandprices are too high relative to producer demand.
- 23. Multiple ChoiceA shortage of a good is often a signal for a producer tolower production of that good.lower the prices of that good.raise the prices of that good.shift production to another good.
- 24. Multiple ChoiceAccording to the law of supply, when prices decreasequantity supplied decreasesquantity supplied increasessupply decreasessupply increases
- 25. Multiple ChoiceIf the price of butter increases, then we would expect that the demand for margarine would fall.TrueFalse
- 26. Multiple ChoiceAn Increase in Supply or a shift of the supply curve to the right occurs when:A rise in input costs happensIf Government pays subsidies for a good.If producers expect the price to fall in the future.If government regulates a good.
- 27. Multiple ChoiceOn a graph with both a supply and demand curve, where are shortages found?Above the equilibrium price.Below the equilibrium price.
- 28. Multiple ChoiceIn order to reduce shortages, business owners will likely ____ prices.increasedecreasesetfix
- 29. Multiple ChoiceIn the market/price system, __________ determine the prices of goods and services.buyerssellersbuyers and sellers
- 30. Multiple ChoiceIf supply increases, but demand remains unchanged, which will be the result?Equilibrium price and quantity will decrease.Equilibrium price will increase, but quantity will decreaseEquilibrium price will decrease, and eq. quantity will increase
- 31. Multiple ChoiceIf demand increases, but supply remains unchanged, which is the result?Equilibrium price and quantity will increase,Equilibrium price and quantity will decreaseEquilibrium price will decrease, and quantity will increase.
- 32. Multiple ChoiceWhen there is a shortage the price will usually?risefallremain the sameequilibrium
- 33. Multiple ChoiceIf the Price is $2, there will be...A surplus of 45A shortage of 85A shortage of 45A surplus of 85
- 34. Multiple ChoiceIn order to reduce shortages, business owners will likely ____ prices.increasedecreasesetfix
- 35. Multiple ChoiceIf a market is at equilibrium and if there is a sudden increase in demand, you have asurplusshortageStays the same
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