If a surplus of a product currently exists in the market,
a. the market price is too low.
b. the quantity demanded exceeds the quantity supplied at the current price.
c. the quantity supplied exceeds the quantity demanded at the current price.
d. there is a shortage of the product.
e. there will be a tendency for the price to rise.
QUESTION 2A surplus means a(n):
a. excess demand for this product.
b. situation where the current market price is too low.
c. situation where the quantity demanded exceeds the quantity supplied.
d. situation where the quantity supplied is less than the quantity demanded.
e. excess supply of the product at the current price.
QUESTION 3A surplus of wheat:
a. is impossible if people are hungry.
b. is impossible if the price of wheat is below equilibrium.
c. will result when the quantity demanded exceeds the quantity supplied at the current price.
d. is unlikely to cause any change in the price of wheat.
e. indicates that the problem of scarcity of wheat has been solved.
QUESTION 4The price of a good will fall if:
a. there is an excess demand of the good.
b. demand and supply of the good are the same.
c. there is an excess supply of the good.
d. the price is below the equilibrium price.
e. the price is near the equilibrium price.
QUESTION 5If there is a surplus in the oil market, then the price of oil will:
a. rise. b. fall.
c. remain unchanged. d. react unpredictably.
QUESTION 6Assume Qs represents the quantity supplied at a given price and Qd represents the quantity demanded at the same given price. Which of the following market conditions produce a downward movement of the price?
a. Qs = 1,000, Qd = 750 b. Qs = 750, Qd = 750.
c. Qs = 750, Qd = 1,000 d. Qs = 1,000, Qd = 1,000.
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