Combining Supply and Demand

Question 1

The point at which quantity demanded and quantity supplied are equal is called:

Accepted Answer

equilibrium

Question 2

If a demand curve shifted to the left, this would show a(n) ________________ in demand.

Accepted Answer

decrease

Question 3

Advantages of price in a free market economy could include:

Accepted Answer

consumer choice, efficient allocation of resources, flexibility

Question 4

Minimum wage is an example of a:

Accepted Answer

price floor

Question 5

Which of the following could be an example of disequilibrium?

Accepted Answer

excess demand, excess supply

Question 6

This is defined as a maximum price that can be charged for a good.

Accepted Answer

price ceiling

Question 7

Also known as excess demand.

Accepted Answer

shortage

Question 8

If a supply curve shifted to the right, this would show a(n) ______________ in supply.

Accepted Answer

increase

Question 9

A surplus is usually a result of:

Accepted Answer

excess supply

Question 10

How does price act as a signal to consumers?

Accepted Answer

If the price is low, we buy

Questions 10