TOPIC 3 - MARKET EQUILIBRIUM

If both demand and supply curves shift rightward then equilibrium quantity increase

• True

• False

A ___ ___ keeps prices form going any lower and causes a ___ ___ .

• Price ceiling; Shortage

• Price Ceiling; Surplus

• Price Floor; Shortage

• Price Floor; Surplus

What are the method to determine equilibrium price and equilibrium quantity ?

• Mathematical equation method

• Table method

• Graphical method

• Non of above

A___ ___keeps prices form going any higher and causes a________ .

• Price ceilling; Shortage

• Price ceiling; Surplus

• Price floor; Shortage

• Price floor; Surplus

The equilibrium price is the price level at which there is no surplus or shortage in the market

• True

• False

Above graf shows as

• Decreased demand

• Increased demand

• Increased supply

• Decreased supply

Above graf shows as

• Decreased supply

• Decreased demand

• Increased demand

• Increased supply

Market Equilibrium in a specific market is the point where quantity supplied and _ are reasonable in balance

• Asking price

• Quantity demanded

• Goverment spending

• The discount price

When equilibrium price decrease to P3, What is the equilibrium for P3 ?

• D3

• E3

• P3

• Q3

What is the Equilibrium Price?

• 1
• 2
• 3
• 4