Equilibrium Price Quiz

What does the equilibrium price represent?

• The price where quantity demanded exceeds quantity supplied

• The price where quantity supplied exceeds quantity demanded

• The price where quantity demanded equals quantity supplied

• The price set by government regulation

If the price in a market is above the equilibrium price, this creates ___________.

• A shortage

• A surplus

• Neither a shortage nor a surplus

• Elastic supply

When there is a surplus, what do sellers typically do?

• Increase their prices

• Lower their prices

• Keep their prices the same

• Stop selling

What happens when the price is below the equilibrium price?

• A surplus occurs

• The quantity demanded exceeds the quantity supplied

• Buyers stop competing

• Prices stabilize

What is it called when the price is below the equilibrium price?

• a shortage

• a surplus

• neither a shortage nor a surplus

• marginal utility

When there is a shortage, what do sellers typically do?

• Increase their prices

• Lower their prices

• Keep their prices the same

• Stop selling

What is the equilibrium price?

• When quantity demanded is greater than quantity supplied

• When quantity supplied is greater than quantity demanded

• When quantity demanded equals quantity supplied

• When there is a surplus in the market

What is it called when the quantity demanded does not equal the quantity supplied?

• Equilibrium

• Disequilibrium

• Balance

• Stability

What can occur when there is disequilibrium in the market?

• Only a surplus

• Only a shortage

• A shortage or a surplus

• Neither a shortage nor a surplus

What are fixed costs?

• Costs that vary with output

• Costs that remain constant regardless of output

• Costs that decrease with increased production

• Costs that only occur when production stops