Why is equilibrium price shown by the crossing of the supply and demand curves in a market

both are equal, because there's nothing left

Say the government wants to raise taxes on phones. Why will the equilibrium price rise?

Because everyone's price will have a higher tax added to it.

How are surplus and shortage related to equilibrium price?

Both are nonexistant during equilibrium.

Explain the differences between the pair:Market equilibrium/ disequilibrium

M. E. is when surplus and demand are equal. D. E. is unequal

List the four characteristics of the price system.

neutral, market driven, flexible, and efficient.

How is equilibrium price related to market equilibrium?

E.P. is when demand and surplus are equal. M.E. is equal

Why is the market always moving toward equilibrium?

Because prices fall during surplus, prices rise in shortage

Explain the differences between the pair: surplus/ shortage

surplus is abundance, shortage is too little

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Chapter 6 Econ

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VIVA LA CHAPTER 6

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Questions 10

Answers

1
Why is equilibrium price shown by the crossing of the supply and demand curves in a market
Us potatoes live in the ground.
both are equal, because there's nothing left
there is too much of supply
there is too much of demand.
2
Say the government wants to raise taxes on phones. Why will the equilibrium price rise?
Because everyone's price will have a higher tax added to it.
Do potatoes and Nutella go together?
Because phone companies will raise their prices.
Prices will not rise. Taxes won't rise
3
How are surplus and shortage related to equilibrium price?
Potatoes can speak too
there is a surplus during equilibrium
there is a shortage during equilibrium
Both are nonexistant during equilibrium.
4
Explain the differences between the pair:Market equilibrium/ disequilibrium
equilibrium and disequilibruim are unrelated
M. E. is when surplus and demand are equal. D. E. is unequal
They are the same
I am a potato.
5
List the four characteristics of the price system.
Support the potato revolution. Viva la potato.
market, price, supply, and consumers
neutral, market driven, flexible, and efficient.
demand, supply, equilibrium, and market
6
What is incentive?
Nutella will never be equal to the amazingness of potatoes.
reasons to buy something
incentive is being paid under the table
incentive is a way to make money
7
How is equilibrium price related to market equilibrium?
M.E. is market. Equilibrium price is surplus.
Potatoes need your funding and support
E.P. is when demand and surplus are equal. M.E. is equal
Demand and supply are not related
8
Why is the market always moving toward equilibrium?
Potatoes need your love. Support us on Kahoots. :D
Equilibrium doesn't exist.
Because the market rises or falls because of equilibrium
Because prices fall during surplus, prices rise in shortage
9
Why do changes in demand or supply cause disequilibrium?
the balance is equal
Potatoes aren't allowed on Kahoots. :'(
The balance is now unequal
Changes don't occur with supply
10
Explain the differences between the pair: surplus/ shortage
Shortage and surplus are unrelated.
shortage is too much, surplus is too little.
Seriously, I'm a potato.
surplus is abundance, shortage is too little

Chapter 6 Econ Flashcards | StudBud