The price of a good will rise when:

The price of a good will rise when:
 a. there is a shortage of the good. b. there is a surplus of the good.
  c. demand for the good decreases. d. the supply of the good increases.

QUESTION 2

When there is a shortage of a product in a market the:
 a. price will fall.
  b. price must be below the equilibrium price.
  c. price must be above the equilibrium price.
  d. producers will reduce output and sales will fall.

QUESTION 3

When the price of a good is above its equilibrium price, a:
 a. surplus puts upward pressure on the price.
  b. surplus puts downward pressure on the price.
  c. shortage puts upward pressure on the price.
  d. shortage puts downward pressure on the price.

QUESTION 4

If the quantity demanded of milk is 55,000 and the quantity supplied of milk is 80,000, then:
 a. there is an excess supply of 25,000 units of milk.
  b. the price of milk will tend to rise to clear the market.
  c. consumers get the milk they want so market equilibrium exists.
  d. there is an excess demand of 25,000 units of milk.
  e. this is the intersection of market supply and demand curves.

QUESTION 5

If the current market price is above the equilibrium price, then:
 a. the quantity demanded exceeds the quantity supplied.
  b. there will be a shortage.
  c. the quantity supplied will exceed the quantity demanded.
  d. the price will have to increase to establish equilibrium.
  e. demand will shift to the left.

QUESTION 6

Assume that the equilibrium price for a good is 5 . If the market price is 10, a:
 a. shortage causes the price to decline toward 5.
  b. surplus causes the price to rise above 10.
  c. shortage causes the price to rise above 10.
  d. surplus causes the price to decline toward 5.