Topic 1 Quiz

25 July 2022
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question
If a shortage exists in a market, then we know that the actual price is:
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below the equilibrium price, and quantity demanded is greater than quantity supplied
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Which of the following would cause price to increase?
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a shortage of the good
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Which of the following would cause price to decrease?
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a surplus of the good
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When the price of a good is lower than the equilibrium price:
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buyers desire to purchase more than is produced
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If the demand for a product decreases, then we would expect equilibrium price:
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and equilibrium quantity to both decrease
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Which of the following events must cause equilibrium quantity to rise?
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demand and supply both increase
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Equilibrium price must decrease when demand:
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decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously
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Equilibrium quantity must increase when demand:
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increases and supply does not change, when demand does not change and supply increases, and when both demand and supply increase
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Which of the following cause equilibrium price to fall?
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demand decreases and supply increases
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Equilibrium quantity must decrease when demand:
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decreases
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Supoose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a:
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surplus to exist and the market price of roses to decrease.
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When the price of a good is higher than the equilibrium price:
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sellers desire to produce and sell more than buyers wish to purchase.
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If the supply of a product increases, then we would expect equilibrium price:
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to decrease and equilibrium quantity to increase.
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If a surplus exists in a market, then we know that the actual price is:
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above the equilibrium price, and quantity supplied is greater than quantity demanded.
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If, at the current price, there is a surplus of a good, then:
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sellers are producing more than buyers wish to buy.
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When a shortage exists in a market, sellers:
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raise price, which decreases quantity demanded and increases quantity supplied until the shortage is eliminated.
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The unique point at which the supply and demand curves intersect is called:
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equilibrium.