MCQ MARKET EQUILIBRIUM

When the quantity demanded equals quantity supplied

• the government must be intervening in the market.

• there is a shortage.

• there is a surplus.

• none of the above

When the price is below the equilibrium price, the quantity demanded

• is less than the equilibrium quantity. The quantity supplied exceeds the equilibrium quantity.

• exceeds the equilibrium quantity. The quantity supplied is less than the equilibrium quantity.

• exceeds the equilibrium quantity. So does the quantity supplied.

• is less than the equilibrium quantity. So is the quantity supplied.

A price below the equilibrium price results in

• a further price fall.

• a shortage.

• excess supply.

• a surplus.

If the quantity demanded exceeds the quantity supplied, then there is

• a shortage and the price is above the equilibrium price.

• a surplus and the price is below the equilibrium price.

• a shortage and the price is below the equilibrium price.

• a surplus and the price is above the equilibrium price.

If the quantity supplied exceeds the quantity demanded, then there is

• a shortage and the price is below the equilibrium price.

• a surplus and the price is below the equilibrium price.

• a surplus and the price is above the equilibrium price.

• a shortage and the price is above the equilibrium price.

The equilibrium price in the above figure is

• $2

• $8

• $4

• $6

The equilibrium quantity in the above figure is

• 400 units.

• 300 units.

• 600 units

• 200 units.

At a price of $10 in the above figure, there is

• a surplus of 400 units.

• a shortage of 200 units.

• a surplus of 200 units.

• a shortage of 400 units.

At a price of $4 in the above figure,

• there is a surplus of 200 units.

• the equilibrium quantity is 400 units

• the quantity supplied is 400 units.

• there is a shortage of 200 units

If the good in the above figure is a normal good and income rises, then the new equilibrium quantity

• is more than 300 units.

• is less than 300 units.

• could be less than, equal to, or more than 300 units.

• is 300 units.