Micro Equilibrium
If the demand and supply both increase equally, then the equilibrium price ________ and the equilibrium quantity ________.
does not change; increases
A competitive market is in equilibrium. Then there is a decrease in demand and a decrease in supply. The equilibrium price ________, and the equilibrium quantity ________.
perhaps changes but we can't say if it rises, falls, or stays the same; decreases
Suppose the equilibrium price of movie tickets is $10. If the supply curve for movies shifts __________, the equilibrium price will ______.
rightward; decrease
If a freeze destroys oranges before they are harvested, the equilibrium price of an orange ________ and the equilibrium quantity ________.
rises; decreases
Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity ________.
rises; increases
If a market begins in equilibrium and then the demand curve shifts leftward, a
surplus is created, which is eliminated by a fall in price.
If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then
the equilibrium price definitely rises
When a surplus of rice occurs
the price of rice falls
If the supply of solar panels increases,
the price of solar panels decreases and the quantity increases
Market equilibrium occurs when
the quantity demanded equals the quantity supplied
If the price is below the equilibrium price,
there is a shortage
Both the demand for and supply of cars changes in France. You observe that the quantity of cars does not change but the price rises. Thus, which of the following occurred?
Demand increased and supply decreased by an equal amount.
For consumers, taco chips and salsa are complements. If the price of salsa rises, what is the effect on the equilibrium price and quantity of taco chips?
The equilibrium price of taco chips falls and the equilibrium quantity decreases
A surplus of cardboard boxes means that
at the current price of a cardboard box, the quantity demanded is less than the quantity supplied.