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Title: When a market is in equilibrium, Post by: aharden0629 on Feb 27, 2018 When a market is in equilibrium,
a. producers earn profits b. the minimum possible price is achieved c. there is no incentive for consumers or producers to change their current behavior d. excess demand is less than excess supply e. the maximum possible price is achieved QUESTION 2 The equilibrium point represents the only price-quantity combination in a market that a. causes both buyers and sellers to agree to a price increase b. causes both buyers and sellers to agree to a price decrease c. exactly matches the independent plans of buyers and sellers d. allows buyers to purchase what they want e. allows sellers to earn a profit QUESTION 3 Economists emphasize the importance of equilibrium in markets because a. trading in markets can only occur at the equilibrium price and quantity b. the behavior of buyers and sellers will automatically guide the market toward the equilibrium price and quantity c. all buyers and sellers are better off at the equilibrium point than any other price and quantity combination d. it represents a compromise between sellers hoping for low prices and buyers searching for high prices e. it is the only price-quantity combination that guarantees that the poorest members of society can purchase the good or service QUESTION 4 The most important characteristic of the equilibrium price is that it a. guarantees that producers earn profit b. clears the market, leaving neither a surplus nor a shortage c. maximizes the quantity demanded d. minimizes the quantity demanded e. guarantees that all buyers who desire the product will get it QUESTION 5 If the price of the good described in Exhibit 4-1 is 1.60, then an economist would expect the a. price to decrease to 1.40 b. price to decrease to 1.50 c. quantity supplied to increase to 50 units d. quantity demanded to increase to 80 units e. quantity demanded to increase to 90 units QUESTION 6 If people believe that prices are going to be higher in the future then they are today, they will a. wait until the future to purchase the things they wand b. decrease their demand now c. increase their demand now d. increase their supply now e. save more today so they have the income to buy more in the future QUESTION 7 If there is a shortage in the market for jeans, a. producers' inventories will increase b. the price should begin to rise c. the demand curve will shift to restore equilibrium in the market d. the supply curve will shift to restore equilibrium in the market e. producers expect government to impose a price ceiling Title: When a market is in equilibrium, Post by: jfurs03 on Feb 27, 2018 Content hidden
Title: When a market is in equilibrium, Post by: aharden0629 on Feb 27, 2018 :heavy_check_mark:
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