Equilibrium Economics

The point in the middle of the two curves represents or shows....?

• Market Equilibrium

• An increase in supply

• A shortage

• A surplus

What could cause the shift from D1 to D2?

• A change in preferences

• A change in price

• A change in quantity demanded

• A change in quantity supplied

This graph represents...?

• Changes in quantity demanded

• Changes in quantity supplied

• Changes in demand

• Changes in supply

This graph represents...?

• Changes in quantity demanded

• Changes in quantity supplied

• Changes in demand

• Changes in supply

If price is set at a level that falls ​ (a)   the equilibrium price, there will be a ​ ​ (b)   as consumers won't want to purchase as often at that price

• above

• surplus

• below

• shortage

Equilibrium price ​ (a)   and equilibrium quantity ​ (b)  

• decreases

• is unknown

• increases

What is the Equilibrium Price?

• 1

• 2

• 3

• 4

Equilibrium price (a)   and Equilibrium quantity (b)  

• increases

• decreases

If the supply curve on this graph represents iPhones, what would cause the change from S to S1 (red to purple line)?

• An increase in computer chips

• An increase in the cost of producing an iPhone

• Employees figure out a way to work more efficiently

• The price of iPhones increases

Which statement expresses a central idea of how the laws of supply and demand work?

• The government sets the prices for goods and services.

• Prices are determined by the interaction of producers and consumers.

• Consumers alone determine the prices for goods and services.

• Technology dictates the prices charged for goods and services.