MARKET EQUILIBRIUM

Market equilibrium is achieved when ...

• the quantity demanded is equal to the number of buyers.

• the price is equal to the quantity.

• the quantity demanded is equal to the quantity supplied.

• Economic grows.

When the market for goods is disequilibrium,

• the quantity demanded equals to quantity supplied.

• there is no tendency for the price to increase or decrease.

• there is a tendency for the price to increase or decrease.

• All of the above.

When the government imposes a floor price on durian, this will result in ...

• a fall of the demand of durian.

• an increase in the quality of durian.

• surplus of durian.

• shortage of durian.

The imposition of price ceiling in the market will cause quantity demanded to be ...

• lesser than quantity supplied.

• greater than quantity supplied.

• equal to quantity supplied.

• All of the above.

Price control can lead to waste of resources if .....

• the maximum price is above the equilibrium price.

• the maximum price is below the equilibrium price.

• the minimum price is above the equilibrium price.

• the minimum price is below the equilibrium price.

Which of the following measures will assist government in trying to control the increase price of chickens during festive season?

• Increase in taxes

• Price ceiling

• Decrease in subsidies

• Price floor

Which one of the following is the advantage of the price ceiling?

• The resources are fully utilized.

• The income of the producer is protected.

• The unemployment rate will be reduced.

• Consumer enjoys goods and services at lower price.

Suppose a tax is imposed on Good A, consumer will bear no burden if the ...

• demand for Good A is inelastic.

• demand for Good A is elastic.

• demand for Good A is perfectly inelastic.

• demand for Good A is perfectly elastic.

An increase in the service tax of MacDonald's will shift the ...

• supply curve to the right.

• demand curve to the left.

• supply curve to the left.

• demand curve to the right.

Subsidies given to paddy farmers will result in ...

•  

  a shift in the supply curve to the right.

• a shift in the supply curve to the left.

• a shift in the demand curve to the right.

• a movement along the supply curve.