Determining Market Price

Which occurs during market equilibrium? Check all that apply. a. Supply and demand meet at a specific price. b. Supply is slightly greater than demand. c. Supply and demand meet at a specific quantity. d. Supply and demand meet at a demand point. e. Supply and demand meet at a supply point.

a. Supply and demand meet at a specific price. c. Supply and demand meet at a specific quantity.

On a graph, an equilibrium point is where a. a supply curve and a demand curve meet. b. a supply curve is higher than a demand curve. c. the supply and demand curves head up. d. the supply and demand curves head down.

a. a supply curve and a demand curve meet.

On a graph, a(n) _____shows the demand portion of equilibrium. a. demand curve b. supply curve c. equilibrium point d. excess supply

a. demand curve

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded? a. excess supply b. stable prices c. exact equilibrium d. increased production

a. excess supply

Supply and demand coordinate to determine prices by working a. together. b. competitively. c. with other factors. d. separately.

a. together.

The graph shows excess demand. Which explains why the price indicated by p2 on the graph is lower than the equilibrium price? a. As prices fall, quantity demanded goes up. b. As prices fall, quantity demanded goes down. c. As prices fall, quantity demanded stays the same. d. As prices fall, quantity demanded disappears.

a. As prices fall, quantity demanded goes up.

The graph shows excess supply. Which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium? a. It needs to be increased. b. It needs to be decreased. c. It needs to reach the price ceiling. d. It needs to remain unchanged.

b. It needs to be decreased.

Both excess supply and excess demand are a result of a. equilibrium. b. disequilibrium. c. overproduction. d. elasticity.

b. disequilibrium.

Equilibrium is defined when a. supply is limited and demand decreases. b. supply and demand meet. c. demand is higher than supply. d. supply is higher than demand.

b. supply and demand meet.

A limited amount of goods available means that excess______is occurring.

demand