In a market, competitive forces guarantee that any price other than the equilibrium price is:
a. market-clearing.
b. stable.
c. temporary.
d. unaffordable.
QUESTION 2The use of a price system eliminates:
a. scarcity.
b. equilibrium.
c. shortages and surpluses.
d. changes in supply and demand.
QUESTION 3Which of the following best explains the determination of the equilibrium price of a product?
a. Production costs.
b. The supply of a good.
c. The interaction of supply and demand.
d. The decisions of government.
QUESTION 4The equilibrium price is best defined as the price at which:
a. demand is smaller than supply.
b. suppliers want to supply more goods.
c. demanders want to buy more goods.
d. quantity demanded is equal to quantity supplied.
e. the quantity demanded increases.
QUESTION 5All of the following apply to the description of a market in equilibrium except:
a. quantity supplied equals quantity demanded.
b. the intersection of the supply and demand curves.
c. no excess supply exists.
d. no excess demand exists.
e. the price of the good is falling.
QUESTION 6If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then:
a. excess demand exists.
b. excess supply exists.
c. price will rise.
d. price will fall.
e. the market is in equilibrium.
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