What is market equilibrium?

Where market demand equals market supply

Where market demand is greater than market supply

What does disequilibrium mean?

When the market is not in equilibrium

Where market demand is less than market supply

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Market Equilibrium

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Identifying a market equilibrium, surplus and shortage

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Questions 14

Answers

1
An increase in supply will cause what situation to occur at the current price?
Price to rise
Shortage
Surplus
Quantity to fall
2
What situation is shown in the graph below if the current price is $2?
Excess Demand
Equilibrium
Shortage
Surplus
3
If the current price is below equilibrium, what situation is created?
Shortage
Surplus
Equilibrium
Excess Supply
4
What is market equilibrium?
Where market supply is less than market demand
Where market demand is less than market supply
Where market demand is greater than market supply
Where market demand equals market supply
5
What is a shortage?
Where market demand is less than supply
Where market supply is greater than market demand
Where market demand is greater than market supply
Where market demand equals market supply
6
If the current price is above equilibrium price, what situation is created?
Surplus
Equilibrium
Excess demand
Shortage
7
What is the equilibrium quantity shown in the graph below?
600
800
200
400
8
A decrease in supply will cause what situation to occur at the current price?
Equilibrium
Surplus
Quantity increase
Shortage
9
An increase in demand will cause what situation to occur?
Shortage
Quantity to fall
Surplus
Price to fall
10
What does disequilibrium mean?
There is no pressure on the market
When the market is not in equilibrium
When the market is in equilibrium
When quantity demanded equals quantity supplied
11
What situation is shown in the graph below if the current price is $2?
Excess Supply
Shortage
Surplus
Equilibrium
12
A decrease in demand will cause what situation to occur at the current price?
Equilibrium
Shortage
Surplus
Quantity rise
13
What is a surplus?
Where market supply equals market demand
Where market demand is greater than market supply
Where market demand is less than market supply
Where market supply is less than market demand
14
What is the equilibrium price shown in the graph below?
1.50
1.00
2.50
2.00

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