Practice Market Equilibrium (1.9) - Demand and Supply

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8 questions

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Exercise
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2 questions · about 1 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
Define market equilibrium.
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Consider what happens when demand and supply curves match.
Question 2.
What happens to equilibrium price when demand increases?
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Think about the demand curve shifting.
3Question 3.
What is market equilibrium?
- Where price exceeds demand
- Where quantity demanded equals quantity supplied
- Where suppliers control the price
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Recall the definition of market equilibrium.
4Question 4.
True or False: The equilibrium price increases when demand decreases.
- True
- False
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Consider the relationship between demand and price dynamics.
Question 5.
Given a scenario where consumer income increases, leading to increased demand for luxury cars. Analyze how this affects the market equilibrium for luxury cars.
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Consider how demand changes with consumer income.
Question 6.
A severe drought reduces the quantity supplied of wheat. Predict the changes in equilibrium price and quantity in the wheat market.
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Think about the graph for supply shifts.

4 more questions in this section. Enroll free to practise them all.