Economics review at begining of semester

Equilibrium price is the price at which

• everything that is produced is sold

• the amount of consumers demand is equal to the amount sellers supply

• the number of buyers equals the number of sellers

• Supply exceeds demand

A market is experiencing a shortage. What will happen to the price as market moves back to equilibrium.

• decrease

• increase

• stay same

• both increase and decrease

A market is operating with a disequilibrium price. What must this mean?

• demand and supply are not equal

• shortages do not exist

• the price mechanism is not working

• there is no opportunity cost involved

If there is increase in price, what will happen to demand

• decrease

• increase

• stay same

• both increase and decrease

If there is increase in price, what will happen to supply

• increase

• decrease

• stay same

• both increase and decrease

what kind of economic activities did you do during your holiday related to our topics like demand, supply, price, market equilibrium. write at least 3 examples and briefly explain