Equilibrium

Question 1

How do you arrive at equilibrium?

Accepted Answer

It is where demand is equal to supply

Answer

It is where supply exceeds demand

Answer

It is where demand exceeds supply

Question 2

Why is equilibrium important to consumers?

Accepted Answer

Consumers do not want shortages of goods they demand

Answer

Consumers want to know the price level

Answer

Consumers do not want excess supply

Question 3

When there is excess supply:

Accepted Answer

There is downward pressure on prices

Answer

There is upward pressure on prices

Answer

There is downward pressure on quantity supplied

Question 4

When demand increases:

Accepted Answer

The equilibrium price increases, and the equilibrium quantity increases

Answer

The equilibrium price decreases, and the equilibrium quantity decreases

Answer

The equilibrium price decreases, and the equilibrium quantity increases

Question 5

When demand decreases:

Accepted Answer

The equilibrium price decreases, and the equilibrium quantity decreases

Answer

The equilibrium price increases, and the equilibrium quantity increases

Answer

The equilibrium price increases, and the equilibrium quantity decreases

Answer

The equilibrium price decreases, and the equilibrium quantity increases

Question 6

When supply decreases:

Accepted Answer

The equilibrium price increase, and the equilibrium quantity decreases

Answer

The equilibrium price increases, and the equilibrium quantity increases

Answer

The equilibrium price decreases, and the equilibrium quantity decreases

Answer

The equilibrium price decreases, and the equilibrium quantity increases

Question 7

When supply increases:

Accepted Answer

The equilibrium price decreases, and the equilibrium quantity increases

Answer

The equilibrium price increases, and the equilibrium quantity decreases

Answer

The equilibrium price decreases, and the equilibrium quantity decreases

Answer

The equilibrium price increases, and the equilibrium quantity increases

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