Supply & Demand Quiz #1

How would you describe the relationship of supply and demand at this price?

• Demand exceeds supply

• Supply exceeds demand

• Supply equals demand

• Demand equals supply

An observer of the graph would call this a(n):

• Shortage

• Surplus

• Equilibrium price

• Demand equals supply

At this price:

• Low prices encourage buyers but discourage sellers

• High prices encourage sellers but discourage buyers

• The market is stable

• Buyers can find goods at equilibrium price

To return to equilibrium, price would need to:

• Increase

• Decrease

• Stay the same

• Shift demand curve

Which description best describes the information in this graph at this price?

• Supply exceeds demand

• Demand exceeds supply

• Qd = Qs

• Qs = Qd

An observer of this graph would call this a(n):

• Surplus

• Shortage

• Qd = Qs

• Shift in supply

At this price:

• High prices encourage producers but discourage buyers

• Low prices encourage buyers but discourage sellers

• Market for a good is stable

• Sellers can find buyers for their goods

To return to equilibrium, price would need to:

• Decrease

• Increase

• Remain the same

• Shift in supply

The situation graphed here would be called:

• Equilibrium price

• Shortage

• Surplus

• Oaken's Trading Post

At equilibrium price:

• Quantity supplied = quantity demanded

• Price increases to soak up excess demand

• Price decreases to soak up excess supply

• Demand increases in response to the price of related goods